The Brexit vote has caused plenty of uncertainty for the construction sector, but it has also opened up some potential opportunities.
The referendum outcome in June has left plenty of uncertainty for businesses around the country, including those in the construction industry. Concern has centred on how Brexit could impact on activity, and whether the government's response will see more investment in infrastructure and housing.
The Markit/CIPS UK Construction Purchasing Managers Indexes (PMIs) have provided some detailed data on how the construction sector has been impacted by the vote. Activity was reduced by the uncertainty over the tight vote in the run-up to June 23rd, while the July data showed a significant contraction not just in construction, but in manufacturing and the services sector too, prompting fears of a severe recession.
Since then, however, the picture has become more nuanced. August figures across the economy saw a bounce-back as apparent growth resumed, allowing construction firms to start feeling relatively optimistic about the outcome.
The latest data is mixed. The October PMI showed an overall reading of 52.6, up from September's 52.3. With any figure over 50 representing growth, this in itself is good news.
Confidence is lower than it was a few months ago, and the PMI report noted Brexit had affected investment levels. Nonetheless, 43 per cent of firms expected to see growth in the next 12 months, compared with only 14 per cent anticipating a contraction.
Indeed, the government's response to Brexit has provided some specific reasons to be upbeat. A new prime minister and chancellor have responded to the situation by cutting back on austerity and pledging to invest more, particularly in new housing.
So, while there is indeed uncertainty, mostly around cost and skilled workers, and some areas of construction may be diminished, others may be boosted. Companies who prepare themselves for all eventualities - including by getting their systems and technology updated - may find they will still have plenty of big opportunities as Britain works out where it is going in the post-Brexit future.
To find out the role construction accounting software can play in helping you to tool up for the future by driving efficiency, visibility and profitability within your business, please contact one our product experts or request a free product tour.
