Construction sector still has long-term concerns – Tarmac report

RESEARCH commissioned by Solihull construction firm Tarmac has found the sector in buoyant mood but with long-term concerns.

As the UK embarks on some of its biggest infrastructure projects in a generation, including HS2 and a £15 billion road building programme, senior business leaders from the construction industry are in a confident mood regarding the UK’s infrastructure outlook.

According to the Infrastructure Outlook Report, based on research from Ipsos Mori and commissioned by Tarmac, two thirds (68%) of respondents are confident about the UK’s overall infrastructure outlook over the next 12 months. However, two thirds (66%) of those surveyed agree that not enough is being done to meet the UK’s infrastructure requirements.

Cyrille Ragoucy, Tarmac’s chief executive, said: “It’s great to see that the construction industry is in a confident mood, but there is no room for complacency.

“Challenges remain in meeting the UK’s infrastructure requirements and there is concern about the delivery in the years ahead. However, the industry signals a clear intent to work more collaboratively with all parties to deliver a step change in infrastructure for the UK.”

The construction industry is calling for a range of measures to help improve the UK’s infrastructure, including cutting red tape (83%), increasing government investment (73%), giving greater certainty on government spend (71%), and unlocking private investment (70%).

More than three quarters (77%) of those respondents who think the Government should spend more on new economic infrastructure projects in the next five years believe that the private sector should lead funding for new economic infrastructure projects, more than double the levels thinking other sources should be involved, such as Government borrowing (37%), sovereign wealth funds (32%) or increased taxation (31%).
 
Nearly four-fifths (78%) of participants also agree that the time taken for infrastructure projects could be reduced if there was greater collaboration across supply chains. Such collaboration – public and private – could be facilitated via a Department for Infrastructure, with a clear majority (72%) supporting the creation of such a department.