Impact Of The Construction Industry On The Uk Economy

Sector introduction: Balfour Beatty Plc operates in the heavy construction sub sector of the FTSE 250. This sector is particularly interesting given the effect recession has had on this sector and the ongoing developments in the industry. The construction sector in the UK is unique as the output in this sector fell faster than the whole economy in 2008. It has slipped into recession 3 times over the past 5 years (gov.uk, 2013). Overall the recession has had a dramatic effect in the construction contracting industry. In recent years the sector has been plagued with low customer confidence, high unemployment and limited availability of finance. However now that the UK economy is recovering so is the construction sector, in August 2014 the sector grew at the fastest pace for seven months since the recession (bbc.co.uk 2014). Government Initiatives: Various recent measures have been undertaken by the government which are contributing to the success of the sector. In 2011 a Localism act was introduced simplifying the planning system which in turn incentivized growth. A growth and infrastructure act was also implemented which delivered a further boost to the industry. The government also plans to increase its capital spending plans by  £3 billion per annum from 2015-16, meaning an additional investment of  £18 billion by 2020 (gov.uk 2013). These schemes have proven successful since their implementation, planning application approval rates are at a ten year high. AnotherShow MoreRelatedImpact Of The Construction Industry On The Uk Economy1582 Words   |  7 PagesThe construction industry provides over 3 million jobs in the UK, this being more than 10% of the total UK employment with it contributing to over  £90 billion to the UK economy. (Rhodes, 2014) The construction industry is made up of several dynamic and multiple-sk illed sectors that come together to deliver a product, service or result, with the outcome of the project being to create a change. With the industry having such a huge impact on the UK economy we have to understand the need to deliver,Read MoreImpact Of The Construction Sector On The Uk Economy Essay1084 Words   |  5 Pagesâ€Å"The construction industry is a sector of the national economy engaged in preparation of land and construction, alteration, and repair of buildings, structures, and other real property† (BusinessDictionary, 2016). This sector in recent years has experienced declines in growth and has growing tendencies of entering a recession. 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