Infrastructure key to industry growth next year
But Market View report warns firms to brace for rising costs of materials after Brexit.
Growth in infrastructure will drive the recovery of the construction sector in 2021, according to Mace’s last Market View forecast of the year.
The report called the government’s long-term spending commitments on infrastructure the “main ray of light” for the industry after a feeble recovery of new orders across the construction sector in the third quarter resulted in the weakest pipeline since 2012.
Major projects including HS2, Hinkley Point C, Thames Tideway and Crossrail have already helped infrastructure become the only construction sector in which output in the third quarter was higher than in the first, according to the analysis, while funding of £1.7bn for road projects announced in the government’s recent spending review will also bolster growth.