According to the latest forecasts from the Construction Products Association (CPA), construction output in Britain will average 21.7 per cent between now and 2019.
Looking more short-term, construction output is predicted to rise by 4.9 per cent in 2015, which is lower than the prediction CPA made four months ago, when it said that output would grow by 5.5 per cent this year. Nevertheless, it is almost double the rate of growth than has been projected for the UK economy as a whole.
In 2016 construction output is forecast to hit 4.2 per cent and in 2017 it is predicted to grow healthily again, this time at a rate of 3.5 per cent.
Infrastructure output is expected to drive this overall increase in output - it is forecast to rise 10.3 per cent in 2015, 10.8 per cent in 2016 and 10.4 per cent in 2017. Another strong area of growth is believed to be private house building, which is set to rise nine per cent in 2015, 5.5 per cent in 2016 and 3.5 per cent in 2017.
Dr Noble Francis, CPA economics director, commented: "Prospects for the construction industry are very bright. Construction output is forecast to increase 4.9 per cent in 2015 – almost double the rate of growth for the UK economy as a whole – and 21.7 per cent overall by 2019. This growth will mainly be driven by an increase in work across the private housing and infrastructure sectors."
However, Dr Francis reiterated that there remains "a risk regarding the lack of skilled labour". He said that as output increases this issue is going to become even more pertinent, stating that without investment into growing the talent pool then the forecasts made by CPA may not be achievable.