Construction in the UK economy: The Benefits of Investment

An important independent report into the UK construction industry has recently been published.

The UK Contractors Group (UKCG www.ukcg.org.uk), in partnership with the CBI has commissioned the report by L.E.K. Consulting, the international strategy consultancy, entitled ‘Construction in the UK economy: The Benefits of Investment ‘. http://www.ukcg.org.uk/UK-Contractors-Group-UKCG-Useful-facts-11de7fa

For the first time, we have categorical evidence that spending on construction significantly benefits the UK economy and that construction is the best sector for stimulating employment. It is something we may have known for many years, but this report provides the facts that we can now use.

• Some key findings
• For every £1 spent on construction leads to an increase in GDP of £2.84, as the spending not only creates construction output worth £1, but also stimulates growth elsewhere in the economy worth £1.84.
• 92p of every £1 spent on construction is retained in the UK
• Every £1 invested by the public sector yields a return of 56p to the Exchequer. The net investment is therefore 44p.
• The construction value chain is 10% of UK GDP
• Construction provides a £223 million trade surplus to the UK economy
• Construction employs 3 million people – 8% of the UK workforce
• Construction provides 28.5 jobs per £1 million invested (40% more than manufacturing).

Why it is important

As you will know all too well, we are in a challenging economic environment, with Government spending in the UK set to be reduced, whatever the hue of the party in power. Difficult investment choices are going to have to be made the Public and Private sectors.

It is vitally important that against this backdrop we make a serious case for continued investment in our sector because construction can really be an engine for recovery and growth in the future.

What you can do – a call to action

There is a central core communications campaign that is being undertaken by the UKCG and CBI, with our strong support - to reach key influencers particularly in Government, the Opposition Parties and the Media.

However, this is a campaign that requires as wide a range of support as we can generate and that includes you. So what can you specifically do?

1. Read the report – it is really useful and interesting for anyone involved in our industry.
2. Send it to clients, professional partners, other colleagues in the industry, in fact any stakeholders that you think may have an interest.

If you need any further details on the Report or have ideas about how you can help further support this campaign please contact Paul Gouland, Marketing Director, email paul.gouland@clugston.co.uk.