Rebuilding the Economy Following Covid-19

The importance of construction for the UK and global economy can’t be overstated enough. It is at the forefront of every area of developmental life. However, like almost all industries, the foundations were shaken when the Coronavirus pandemic started in early 2020.

Over 141 000 construction workers lost their jobs following the outbreak of the pandemic. It shows that construction is an industry that thrives during periods of economic growth but can take a serious hit during times of economic depression. This is due to the instability of demand. However, as we finally begin to see the back of Covid-19, construction will play a pivotal role in the rejuvenation and recovery of our economy.

Construction is unique with how labour-intensive the industry and jobs are. According to the Office for National Statistics (ONS), 2.1 million people were employed in the construction industry in 2020. As well as that, there are 343 000 construction companies in the UK. As the economy starts to grow, this number should also hopefully grow. In turn, this will have a trickle-down effect on other industries. Both construction workers and business owners (who amount for both low and high socio-economic backgrounds) will be able to start spending more money on going out to eat, buying houses, getting a new car and pumping money back into the economy.

Another way the construction industry will aid in economic recovery is through financial backing. Investment in construction can offer a quick return which makes it appealing to both private and government investment. Although private investment will likely be uncertain following the economic struggle, the government will be looking to continue to invest in transport, healthcare and housing to name a few. This will be a great thing for construction companies, but also manufacturers and suppliers of the materials needed. Also, the government should look to focus on maintenance infrastructure.

They are smaller projects which means they are more easily started and completed. The maintenance projects will repair and improve the country plus it will allow smaller companies to compete for the projects and reward the local communities. This is as opposed to large scale infrastructure projects that will take years to be approved and only huge international construction companies get to compete for the contracts. Construction is a pillar of the economy and is something that is so important to focus on through our recovery from COVID-19.