Barely 10% of construction thinks government cares enough about the industry to get a good Brexit deal. We report on the levels of pessimism revealed by our exclusive survey and how ÐÇ¿Õ´«Ã½ will be campaigning until the Brexit deadline to get your voices heard
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Brexit is coming – whether with a good deal, a bad deal or absolutely no deal at all, the UK will leave the EU in just 31 weeks’ time. With that deadline in mind, ÐÇ¿Õ´«Ã½ surveyed more than 600 people working in the industry to get a snapshot of how they feel about the changes to come and how these could affect their business. The results show high levels of anxiety about the future and an overwhelming pessimism about the government’s ability to find a path forwards.
The survey shows that for the vast majority working in construction, Brexit represents a future of acute labour shortages, falling workloads and projects put on hold. And while the industry accounts for about 7% of GDP, its voice has so far been ignored by the government, which has failed to allay fears or make special provision for construction’s future. It’s time that voice was heard. So between now and when the UK leaves the EU on 29 March 2019, ÐÇ¿Õ´«Ã½ will take the views of the industry and shout them loud, in its new campaign: ÐÇ¿Õ´«Ã½ Without Borders: Construction Needs a Deal.
Construction is one of the UK’s biggest employers, providing jobs to about 2 million people. Fishing, by contrast, supports just 11,000 jobs but seems to hold much more emotional sway over government and mainstream media alike. Since the EU referendum, the UK has dropped from being the fastest-growing economy in the G7 to one of the three slowest. Sterling is in decline, and the impact of this on the cost of raw materials makes it more expensive to build in the UK than in other European countries.
"I have seen no evidence to suggest that the impact of Brexit on construction has been considered by our negotiators"
Survey respondent
The construction labour force, a significant proportion of which comes from the EU – in London, the figure is 28% – has been depleted as many workers return home, some because they feel unwanted, others for a more material reason: less favourable exchange rates mean there is less of an incentive to stay. We are facing the prospect of scarce labour and higher construction prices, which will hit both demand and capacity.
The construction’s contribution to the economy is seemingly being ignored. But ours is the sector that is going to be essential in the delivery process of large infrastructure projects post-Brexit
Richard Steer, chairman, Gleeds - campaign supporter
These are worrying trends, and not just for our industry. If construction shrinks, the economy as a whole takes a hit, which should alarm MPs of all persuasions. The three main political parties all share a target of building roughly 300,000 new homes a year, and there is now a consensus that big infrastructure projects alongside social infrastructure such as schools and hospitals are needed to boost the country’s productivity. But a growing disconnect has emerged between politicians’ bold ambitions and the country’s ability to deliver them.
The results of ÐÇ¿Õ´«Ã½â€™s survey highlights just how disaffected construction professionals have become with the government’s performance at the Brexit negotiations, and reveals what they feel needs to happen between now and March to safeguard the industry’s future.
"Factors such as import taxes and exchange rates are all unknown risks which could have major impacts on projects"
Survey respondent