Despite 2023 having been a bumpy year for construction, there are reasons to remain optimistic in the new year, writes Pablo Cristi Worm.

The construction industry is headed towards hard times over the next year, according to the latest forecast by the Construction Products Association.

Skills shortages, falling outputs, rising costs and insolvencies are putting pressure on construction’s capacity, writes Pablo Cristi Worm.

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

Construction output returned to growth in September, according to official figures, amid positive signs that supply chain issues in the sector are “not insurmountable”.

Construction output has fallen to 1.5% below its pre-pandemic (February 2020) level after a 0.2% decline in August, according to the latest official figures.

Construction fell by 1.6% in July 2021, with anecdotal evidence suggesting that price increases and product shortages caused by supply chain issues were the main reasons behind the declines, according to official figures.

New construction orders have fallen to a five-month low as rising costs weight on growth in the sector, according to a survey of buyers.

Construction output fell by 1.3% in June 2021, following a decline in repairs and maintenance work, according to the latest official figures.

Construction buyers reported a “marginal” decline in output during January, signalling the end of a seven-month period of expansion.

The Construction Products Association (CPA) has warned the construction industry to expect a “long slog ahead” after it predicted a 25% fall in output across Great Britain during 2020 as…