The coronavirus pandemic has accelerated the impact of a number of pre-existing trends in the UK construction sector, exposing the vulnerabilities of many contractors as well as the country’s reliance on overseas supply chains. Among the key challenges facing firms are supply and labour issues relating to Brexit, the end of government support schemes, IR35 tax regulation reform and the threat of overtrading if they can’t pass on their now elevated costs.
Despite this, construction firms that have been able to balance demand and supply challenges are finding opportunities for consolidation and growth thanks to an increase in infrastructure investment and strong demand from the domestic improvement sector, which has both benefited and challenged many building products manufacturers and distributors.
In our latest publication, Restructuring Advisory Partner Martyn Pullin and Corporate Finance Partner Harry Walker consider the challenges and opportunities of the post-COVID economy, including the immediate and long-term priorities for construction businesses and their suppliers.
£600 billion of planned infrastructure spend over the next five years