Construction output bucked the wider economic trend by rising slightly in August. It remains above pre-pandemic levels and looks relatively strong in the near-term. However, as we enter the winter months – a quieter period for parts of the industry anyway – it is likely to be impacted by the changing political and economic landscape. Interest rates are at their highest in 14 years, inflation the highest for 30 years, and further increases for both are expected. The Bank of England is currently predicting that the UK will enter recession in the fourth quarter of 2022 or the first half of 2023.

Despite this, the adhesives and sealants sector has continued to be robust overall. While adhesives and sealants have been affected by inflationary pressures, volume sales have remained fairly stable. Low investor confidence in the UK economy is weakening the pound, which in turn is increasing the cost of importing raw materials, so companies who are able to source from manufacturers within the UK will reap the benefits.

Recent political uncertainty has also meant that the switch to a new UKCA standard hasn’t been at the top of the Government’s to-do list. The transition arrangements are far from streamlined and testing capacity hasn’t been scaled up to meet demand: there simply isn’t enough capacity. As a result, construction leaders are calling on the Government to halt plans to switch from CE quality marking to a new UKCA standard from January.

Not all construction products are affected, but most adhesives and sealants are, and these are vital if the industry is to deliver the new homes, schools and hospitals the country needs. The aim is to get a two-year delay to allow a joint working party to be established between Government and the construction sector.

At the time of writing, political and economic uncertainty means decision-making on projects such as this is being delayed. The UKCA deadline has already been extended by a year due to the pandemic, so it remains to be seen if a further extension will be granted.