Higher input costs are fuelling fears of a slowing and subdued contractor market in the next 12 months.
According to the latest quarterly analysis from Leeds-based professional services company Turner & Townsend, increased order books for UK contractors haven’t defeated Brexit uncertainty.
The consultancy’s UK market intelligence report finds that order books have increased by 23.4 per centage points in the current financial year (2018-19) while contractors indicate that order books for the next financial year (2019-20) are now 17.5 per centage points fuller than they were in Q1.
However, contractors report that input costs remain stubbornly high and the company’s price data reveals that contractors expect the cost of a representative basket of construction materials to rise by 5.3 per cent in the coming year.
Outside of the UK but less than 300 miles from London, Dublin’s construction market is in the midst of a full-scale boom, with bullish sentiment and strong client demand driving up tender prices at well over double the rate seen in the UK capital.
Paul Connolly, UK Managing Director of cost management at Turner & Townsend, said: “While there have been some high-profile examples of financial sector giants swapping the City for the Liffey, for now the exodus remains more threat than reality.
“While Brexit itself is likely to impact on both sides of the Irish Sea, for now the uncertainty over the nature of the UK departure from the EU is taking a far greater toll in London than in Dublin.”