Slow recovery reflects need for long-term thinking in construction says NFB

The National Federation of Builders (NFB) strongly welcomes news that the UK economy returned to pre-crisis levels in Q2 2014, with overall GDP rising 0.8% quarter on quarter. However, construction fell by 0.5% over the same period and in terms of economic output remains around 12% lower than before the crisis.

The industry can take some comfort in the fact that output has increased 4.2% year-on-year. In the latest state of trade survey, NFB members have reported an increase in output compared with a year ago. Despite this, there is a cautious awareness that a longer term approach must be taken in order to mitigate the risk of such a damaging crisis happening again.

As we move towards the 2015 general election, the NFB is calling for the next government to prioritise long-term investment and finance for the industry as a key priority for stable industry growth. By encouraging institutional investment into construction and development we can help to avoid the damage of short-term economic cycles and better forecast for materials and labour.

Commenting on the figures, NFB chief executive Richard Beresford said:

“The Q2 GDP figures reflect the fragility of the economic recovery and the need to look to longer term solutions to avoid a repeat of the recent crisis. The NFB will continue to work with government on creating a vision for the industry in 2025 through the industrial strategy for construction as well as through regular engagement with central and local government.”

Richard continued:

“The NFB’s vision for construction is for locally driven growth, supported by long-term investment. To make this happen, the industry and policy makers must continue to work together to develop a coherent vision for the future of construction, supported by policies that enable long-term growth and investment to take place.”