The first quarter of 2024 has indeed tested the mettle of the UK construction industry, showcasing resilience amidst challenges such as supply chain disruptions due to Red Sea blockages and persistent labour shortages.

The Construction Products Association’s latest forecast hints at significant challenges ahead, projecting a -2.1% decline in industry output for the year. However, a rebound with a +2% growth is expected in 2025, buoyed by anticipation of interest rate cuts in the second half of the year, which could invigorate housing activity. Inflation has decreased more rapidly than expected, yet the future remains uncertain, especially with concerns about the potential impact of the Red Sea crisis if blockages persist.

Encouragingly, the Brick Development Association (BDA) announced that sales of UK-manufactured bricks reached 92.8 million in February, marking a +13% increase from the previous month. A modest sales growth among building product manufacturers is driven by increased construction activity across residential, commercial, and infrastructure sectors, with demand for bricks and tiles expected to rise with more favourable weather conditions. This uptick in demand is a positive sign, despite the cautious outlook overshadowed by political and macroeconomic factors.

The Chancellor’s Spring 2024 Budget, while prioritising “building homes for young people” and funding significant regeneration projects in London, left many feeling that more support was needed to address the housing crisis, skills shortages, modern construction methods, and sustainability efforts.

From a regulatory perspective, the compulsory Biodiversity Net Gain requirements (February) and the conclusion of the consultation period for the Future Homes Standard (March) highlight a slow but ongoing advancement towards stricter standards for environmentally sustainable housing, with increased interest and demand for eco-friendly products. Yet, ongoing revisions to building regulations, particularly Part L, continue to slow progress as the industry awaits clarity that will influence the choice of building products and project sign-offs.