CIOB: Construction economic influence ‘almost double’ previous estimates

Construction’s economic influence in the UK is almost double that of officially recorded figures.

That’s according to a new report entitled Real Face of Construction 2020 report, published by the Chartered Institute of Building (CIOB).

Official figures from the Office for National Statistics (ONS) suggest that construction accounts for around 6% of economic output in the UK and employs 2.3m people. But the report claimed that the ONS’s “narrow” definition of the industry ignores the work of architects, engineers and quantity surveyors, as well as manufacturers dedicated to the sector and other companies that support construction such as builders’ merchants and plant hire providers.

Once all aspects of the design and construction process are included, construction GDP could be close to double in size, the report argues.

Meanwhile, the report has also uncovered wide variations in performance and output at a regional level in construction since 2013. The CIOB said this indicated the need for careful and integrated policy-making at local, regional and national level.

The report includes regional data examining the number of construction businesses, output from the industry, stock of buildings, number of people employed by sector, annual earnings and key projects in the area.

Better measure needed

The CIOB is calling for a better measure of the construction industry that includes all aspects of the design and construction process, not just the assembly on site.

The report also draws on research that gauges the public’s attitude towards the industry and their aspirations for the built environment. It makes the point that the UK construction industry has not reached its full potential and will only do so if it operates in an environment with a clear vision, with an understanding of different regional needs, and with a focus from policy makers armed with good quality data and information about this economically important sector.

Caroline Gumble, chief executive of the CIOB, said: “The quality of our built environment affects every member of society; our work influences productivity and wellbeing at home and at work. It is both far reaching and life-shaping. Our purpose for this report is to help educate policy makers about the true value of the built environment and the need to work in closer partnership with the industry to realise its full potential, particularly at a regional level where it can rebalance local economies and offer people a quality career unlike many others.”

Sir James Wates, chairman of the CBI Construction Council, welcomed the report and said: “We in the built environment sector know that we have a broader and more profound impact than we’re often given credit for. We are a network of contractors, architects, engineers, quantity surveyors, specialists, facility managers, and many others – all working as a team to create spaces, infrastructure and buildings that improve people’s lives and make the economy work better. We’re economic multipliers, and this new CIOB report helps us to articulate just how that’s so.”

To read the full report, click here.