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Product shortages dent October construction output

Canary Wharf London skyline
London’s Canary Wharf (Image: Unsplash/Dil)

Product shortages caused by supply chain issues drove a 1.8% fall in construction output in October, the largest monthly decline since April 2020.

Official figures from the Office for National Statistics (ONS) showed that new work dropped by 2.9% from September to October 2021, while repair and maintenance remained unchanged.

The main contributors to the decline in output were infrastructure and private new housing, which fell 7.7% and 4.4% respectively. These were offset partly by increases in private industrial and public other new work, which rose 8.8% and 7% respecrively.

Mark Robinson, group chief executive at public sector procurement group Scape, said: “October witnessed the peak of the fuel crisis, port delays and a shortage of HGV drivers. The impact these have had on existing supply challenges, combined with ongoing labour shortages, mean that it’s no surprise that output has taken a knock.

“A potential new wave of Omicron cases and the introduction of restrictions to curb it – on top of ongoing concerns around inflation – mean that 2022 is also likely to be characterised by challenges. Allowed to go unchecked, these developments will only exacerbate existing labour and supply shortages, which will significantly dampen the sector’s ability to pursue further growth and continue supporting the UK’s economic recovery.”

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