As per recently released data from the ONS, construction output in the UK reached pre-COVID levels for the first time in 2022.
Last year, the value of new work reached a record high of £133bn, thereby representing a 15.8% surge when measured as per present prices. This growth was primarily pushed by an expansion in both private as well as public sector projects.
The largest contributors to growth happened to be private new housing as well as public infrastructure, which saw rises of 22.8% and 12.8%, respectively.
It is well to be noted that the private industrial new work went on to experience the largest growth at 56%, but this progress may have been short-lived, as it was the only industry that saw a dip in new orders last year. In 2022, there was a total increase of 11.4% in construction new orders, reaching a total of £80.8bn. This growth was due to private infrastructure, private commercial projects, as well as other public non-housing developments.
The growth in infrastructure new orders was apparently because of a significant rise when it comes to electricity orders, which saw an incredible growth of 226.8% from 2021 to 2022.
Firms across Great Britain saw an increase of 5.9%, and the number of employees also saw a surge of 3.3%. London along with south-east remained the most prominent regions within the market, the highest concentration of both firms as well as employees.
Also, self-employed construction workers have seen a dip by 3.4% to a total of 674,000 in the UK. Last year, the construction industry went on to experience a prominent growth in the number of recorded company insolvencies, with a phenomenal annual growth of 59.4%. This sector played a major role in the entire economy’s insolvencies, thereby accounting for 18.8% of the total.
Significantly, the construction sector happens to have the fourth highest proportion in terms of insolvencies compared to the number of firms in the industry.