Construction industry report reveals return to growth
The construction industry has returned to growth, with profits and productivity up, according to a new report from industry analysts Glenigan.
The 2015 UK Construction Key Performance Indicators (KPI) Annual Report, showed that the median profit margin rising from 2.1% in 2014 to 2.8% this year. Productivity has also improved markedly.
Seven out of 10 (69%) of projects came in on budget or better - on a par with 2014 as the best ever performance on this measure. However, projects were completed on time or sooner only 40% of the time, below an average of 45% since 2003. The report also revealed that increased workloads had meant that firms were struggling to maintain levels of client satisfaction, which has fallen in each of the last three surveys.
The report also showed that projects have become more environmentally efficient, producing fewer CO2 emissions and creating less waste. Median energy use in construction was 199 kg CO2/ £100k project value, and the median project saw 21.6 m3 / £100k project value of waste removed from site.
Stephen Radley, Director of Policy at CITB, said: “There are many positive results in this year’s report, but it shows there is no room for complacency.
“We welcome the return to growth, but project delays shows that the skills challenge is an issue for many across our industry.
“That is why CITB is working with partners in industry and government to deliver the skills that industry needs to grow.”