The Confederation of British Industry's latest economic forecast is a positive one for the general UK economy, predicting 2.6% GDP growth for 2015, up from 2.4% in June, and 2.8% in 2016, up from 2.5%.
Business investment growth for 2015 has been revised up (to 6.2% from 4.5% in June), following stronger than expected Q1 data and the CBI’s suite of business surveys pointing to upbeat capital spending in the year ahead. The CBI has also revised upwards its forecast for earnings growth (2.5% in 2015 and 2.8% in 2016) relative to June (2.0% and 2.4%).
The Construction Industry Training Board's (CITB) "Blueprint for Construction 2015 - 2019" report forecasts average annual growth in construction output of 4.6% through 2019 for both private housing and commercial developments.
And the recently released Construction Products Association (CPA) industry forecast predicts construction output will increase by 4.9% in 2015 and 21.7% overall by 2019. The CPA suggests this growth will mainly be driven by an increase in work across the private housing and infrastructure sectors.
The rosy outlook appears to be borne out by the performance of the major house builders - Barratt, Bellway, Berkeley, Bovis, Persimmon, Redrow and Taylor Wimpey have all reported strong half year results. The general picture is one of increased revenue, higher sale prices and improved margins.
Most house builders have reported stronger than expected sales through the summer and many have strategically planned growth through the remainder of this year and into 2016.
With strong underlying demand coupled with the Government's Help to Buy scheme which is planned to run until 2020, house building looks set to be a vibrant sector for the medium term.
The only fly in the ointment appears to be the much reported skills shortage which could hamper growth and fuel wage inflation. At Blayze Group we've been seeing shortages of quality candidates in key areas for some time. Some developers and contractors are having difficulty filling PM and Quantity Surveyor roles, especially senior positions.
As Search & Selection specialists in the Real Estate sector over many years, at Blayze Group we don't have to rely on forecasts to know what is happening in our industry. We have long standing relationships with most of the leading residential and commercial developers, construction firms and real estate consultancies.
Right now we are seeing some great career opportunities for senior Quantity Surveyors and Building Surveyors, while Project Managers with high rise residential experience are in great demand.
With many house builders and developers refreshing their land banks and seeking opportunistic acquisitions, anyone with experience of land purchasing and planning won't have to look too hard for new opportunities.
It's not just in London and the South East that we are seeing strong demand for senior Real Estate professionals. Our Manchester office is sourcing Chartered Surveyors, Site Managers and Project Managers for clients working on a number of high profile projects across the North West.
It is at times like this - with quality candidates at a premium - that Blayze Group's experience and sector knowledge comes into its own. Because we build long term relationships with clients and candidates, we know the talent, have an intimate understanding of cultural fit - and we can deliver when others can't get out of the starting blocks.
Most of the indicators for construction and house building show the weather is set fair for the foreseeable future, with solid revenue growth, continued demand and historically cheap lending facilities. However, whatever the future brings for the industry - and we've seen bad times as well as good - we know that it is those businesses who have the right talent in place that will thrive and prosper.
If your business is planning to take advantage of the current favourable conditions, Blayze Group can help you build the teams and source the talent you'll need to realise your growth objectives.
If you are an experienced Real Estate professional looking to progress your career, now is a great time to have a confidential chat with one of Blayze Group's specialist consultants.