Construction Crisis: What Does This Mean for the Construction Industry?
Home construction had seen something of a resurgence in the last decade. The construction industry had seemingly beaten the economic downturn and had subsequently thrived. However, it has been reported that recently that the construction industry has taken something of a hit, within the last 12 months and that construction in Australia, the UK and the USA has practically ground to a halt.
While this may seem bad news for all of those in the construction industry, this has meant that professionals have seen the rise of new marketing methods being adopted in order to increase their workflow, albeit on a much smaller scale. Those in the construction maintenance industry, such as Statewide Bearings, have seen growth as more and more construction professionals are being savvy with their maintenance needs are buying spares and repairs for their machinery, as opposed to splashing the cash on brand new equipment.
What is more, the construction industry has been hit harder than any other sector in the midst of the economic downturn. While it has seen some steady growth, one key factor in the slow recovery of the construction sector is that fewer people have been able to get on the property ladder. As many readers will attest, the media has reported the ‘biggest housing crisis in a generation.’ With this housing crisis, many people have been unable to buy their own homes, which have resulted in a severe shortage of new properties being built.
For those in the construction industry, there is a fear that the slowing down of the industry will result in a loss of jobs, for construction workers, builder, administrative staff and so forth. However, while progress has seemingly slowed, there is no need for panic. The construction sector is expected to pick up again within the next 12 months, due to government incentives for mortgages and first time buyers. Construction experts will need to fill the gap of first time buyers, who are eager to put their first tentative steps on the property ladder.
The job market, for construction professionals, is still weak. While the construction industry is still hiring new employees, tradesman and young people on apprenticeships, this has not matched pre-recession figures, only adding fuel to the fire that we are in something of a construction crisis. Amid the scaremongering, the construction industry is still in something of a relatively weak position but there is the prospect of growth in the next quarter.
Government incentives, as well as the need for new properties to cure the current housing issues, will see a steady rise in the construction industry booming once more. Government initiatives are seen as paving the way for the housing market, as well the construction industry, becoming prosperous. While the progress made is a start, growth will be slow. It is expected that the industry will be back to its former glory within a few short years. For those in the construction industry, this is welcome news.
Construction crisis? What crisis?