Impact of the Recession on Construction Contractors

THE IMPACT OF THE GLOBAL FINANCIAL CRISIS ON THE CONSTRUCTION INDUSTRY JANUARY 2009 INTRODUCTION The veritable crisis in the domain of a functions financial system has odd the construction industry facing its toughest challenges for a generation. Salaries atomic number 18 locomote; job cuts are predicted to reach 400,000 in England alone; and the impacts musical note set to hold fast much worse before they get better. No country is immune from the impact of this and the UK, and much of the relievo of the world, is already in, or about to enter a recession. point buoyant construction markets such as the United Arab Emirates (UAE) are starting to feel the effect, with construction growth rate expect to slow from 20% to 15% in 2009 (Al Mal Capital). The United Nations (UN) predicts world economic output forget shrink by as much as 0.4% in 2009 (UNs World Economic detail and Prospects Report, 2009). These are serious times, however, the industry needs to be watchful to contribute to the recovery by retraining workers, maintaining the highest of standards of quality and back up mental institution. Construction professionals must not lose sight of their lading to issues of sustainability, health and safety, ethical business practices and improved building standards. These will future-proof the industry and allow it to grow after the economy recovers.

Companies quest to find an extra edge in an increasingly combative marketplace are likely to employ greater innovation as they look to become to a greater extent efficient. This could have furthermost reaching benefits for the industry in the future, where innovation has never been more vital. IMPACTS AND CHALLENGES Construction Output It is clear that construction is in for a time period of deflation. Forecasts suggest that there will be a 7% decline in output over the next trey years, however, this figure is heavily contingent on Government spending coming through as planned (Construction Products Association). In the snatch quarter of 2008 new order figures were... If you want to get a full essay, order it on our website: Orderessay

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