Summer Market View: June 2024
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DISCOVER
The only way is up
Inflationary recovery is anticipated starting from late 2025, with a more pronounced inflation outlook projected for the recovery phase, particularly post-2026, as per Arcadis' Summer Market View report. Resource constraints and delayed procurements are reshaping the supply chain, contributing to this inflationary trend. Despite signs of improvement in the construction sector, indicating a potential market bottoming out, significant challenges are expected to hinder the translation of increased confidence into a new wave of construction projects.
Summer market view:
June 2024
Contractors are facing capacity constraints due to stalled 2-stage procurements, which diminish market competitiveness and hamper the pursuit of new opportunities, as highlighted in the report. Challenges such as resource constraints, delays in residential projects under the new Building Safety regime, and sluggish progress in commercial and public sector schemes are likely to extend difficult market conditions until mid-2025. As the General Election nears, the construction sector is awaiting clarity on growth initiatives and investment priorities, with a focus on pro-growth investments in education, skills development, R&D, public infrastructure, and environmental sustainability.
UK Construction Market View
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Head of Strategic Research and Insight
