Construction output expected to fall by 25% in 2020

June 23, 2020 / Industry Sectors

According to the Construction Products Association, overall construction output is expected to fall by 25% throughout 2020. The expectation is that the industry will recover strongly in 2021, however it’s still expected to end up 6% lower than usual due to the effects of the coronavirus pandemic.

How will specific construction sub sectors fare?

As ever, various sub sectors within the industry will be affected differently throughout 2020. According to research, 2020 is expected to see:

  • Private housing output fall by 42%
  • Commercial output fall by 36%
  • Private housing repair, maintenance and improvement fall by 35%
  • Infrastructure work fall by 9% 

The CPA’s Economics Director, Noble Francis, said: “The greatest impacts of the lockdown in construction were seen in the private housing sector.

“This uncertainty will also keep the recovery muted in commercial offices, industrial factories and the most-severely affected sub-sector, commercial retail.”

“In addition to these issues around the general economy and construction demand, productivity on site has fallen significantly due to social distancing and other safety, which means that construction activity will take longer and cost more.

“Even in our most optimistic scenario, construction output bounces back by 25.5% in 2021 but, with growth starting from a low base, output will still be 6% lower than in 2019

“Combined with the high levels of uncertainty on demand, getting levels of construction back to pre-Coronavirus levels will take time. Expect a long slog ahead.”

Insolvency in the construction sector

Clarke Bell are Licensed Insolvency Practitioners with more than 28 years’ experience in helping companies in the construction sector to deal with their cashflow problems.

If you’d like free and confidential advice on the best way for you to deal with your company’s debt problems, contact us on: 0161 907 4044 /