Outlook for U.K. Construction Industry After Brexit

The UK has left the EU and has been in a transition period until the 31st December 2020. The fallout from this is likely to be seen in the following months.

The impact on the construction industry will be shaped by the ongoing negotiations between the UK and the EU governments and what agreements can be achieved, at this moment there are still decisions to be made, which leaves the construction industry in a  rather difficult position to say the least.

A large proportion of building materials are sourced from the EU and unless specific agreements are in place will lead to a shortage of materials for the industry. Others are more local – or sourced from countries like India and supplies may not be as limited.

Resin Library, an e-commerce supplier of fibreglass kits and other resin-based supplies has seen an increase in sales, but does expect it to slow down over the holiday period. According to Paul Chapman, “This usually happens over the Christmas period, but it may be compounded by lockdowns and Brexit uncertainty”.

For service based companies like Strandek, work has been quieter, but fairly steady. “We have seen a reduction in enquiries mainly from domestic customers. Industrial ones have been fairly steady.” said Steve Bowen, managing director at Strandek.

And on the product front, Built GRP, a fibreglass flat roofing system has reflected this.

It is not only materials that will be in short supply, there are issues regarding the shortage of skilled and manual labourers according to industry experts we will not have enough workers to fill posts in the UK.

The UK government is currently in deep negotiations with the EU as of December 2020 with both parties unable to reach agreement on certain issues.