Yorkshire construction firms told to activate risk management plans as EU talks go to the wire

Leeds-based Turner and Townsend used its latest UK Market Intelligence Report to highlight the negative impact that Covid-19’s second wave and Brexit uncertainty is having on recovery in the construction sector.

As the economy faces widespread restrictions designed to halt the spread of the virus and the prospect of the UK and EU failing to agree a trade deal grows nearer, the firm said a V-shaped recovery is no longer considered likely.

As such Turner & Townsend recommends that clients must act now to avoid a disrupted start to 2021.

Regardless of whether the UK secures a deal or not in the coming days, it warns of the risk of import delays and cost increases as a new trading relationship with the EU beds in.

The reports calls for clients to map out and scrutinise detailed risk management plans and other provisions for business continuity in the final weeks and days of 2020.

While the renewed lockdown restrictions are placing further strain on demand, the impacts of the end of the transition period could offset some of the deflationary pressures on pricing.

Turner & Townsend forecasts negative tender price inflation of -1 per cent for real estate in 2021.

Michael Grace, Leeds office strategic lead at Turner & Townsend, said: “Yorkshire and Humberside have been tested to the very limit during a turbulent 2020. And yet, the market has remained buoyant, demonstrating resilience and reimagining better ways of working.

“Rightfully, Brexit remains at the forefront of our minds and we will continue to work with our clients to navigate the Brexit transition period.”