Modular construction provides optimism as sector falls back into decline - BLP Insurance comments on latest PMI
- Date: 04/06/2019
Following the release of today’s Construction PMI figures, Phil Harris, Director at BLP Insurance, comments on the sector:
“Despite last month’s bounce back into expansion territory, it was unsurprising to see a significant drop in today’s PMI figures under a cloud of continued political turmoil.
“Nevertheless, market fundamentals continue to remain positive. The planning pipeline for the residential sector is healthy, and a promising year-on-year boost in value (over 25%) for onsite office projects in the past few months could be a long-awaited inflexion point in the three-year commercial lull*.
“Build to Rent (BTR) also continues to flourish. Significant deals this month totalling £190m** are a shot in the arm for the modular construction sector, and will bring a needed investment boost to the UK BTR market and welcome offsite expertise from abroad.
“Elsewhere, the decision by Dumfries and Galloway Council to cough up nearly £7m to end a private finance initiative (PFI) contract in recent weeks is symptomatic of the ongoing problems with the scheme. Were it not for the Brexit stranglehold on the political agenda, the government would surely have made progress towards introducing a replacement by now and lent some confidence to future contracts.
“With no clear Brexit resolution on the horizon, it is vital that the industry continues to embrace the underlying positives within the sector, avoiding the temptation to get bogged down in the Brexit quagmire.”
For further information please contact:
Alastair Doyle or Max Gibson
Telephone: 020 3697 4200
*Glenigan Construction Review May 2019
**Boost for housing market as Japan’s biggest housebuilder, Sekisui House, moves into UK
Places for People and ilke Homes join forces in one of UK housing's biggest modular deals