The Impact of the Cost Of Living Crisis on the Construction Industry

The cost of living crisis is something we’ve all heard about and it’s certainly a very real thing. It’s not just affecting people either, it’s affecting businesses and industries as a whole. Whether it’s a specific element or just a whole, the cost of living crisis is impacting everyone in one way or another. And one question on many people’s minds is Is the cost of living crisis affecting the construction industry? Well, in this blog we’ll aim to cover how the cost of living is impacting the construction industry and those who complete NEBOSH and IOSH courses and whether or not the industry is seeing a downturn as a result.

How is the Cost of Living Crisis Affecting the Construction Industry?

Whilst the cost of living crisis has hit many businesses and industries hard, the construction industry is one so far that has remained relatively unscathed. You might ask why? And the simple answer is many of the costs associated with the construction industry haven’t seen such a rise as others. Whilst the pandemic and the Ukraine war has impacted the supply chain, and caused issues across the board, the construction industry seems to be riding the wave and finding other ways to keep things balanced and materials coming in, whilst continuing to operate safely. In fact one of the main impacts the cost of living crisis has had on the construction industry, is the rising costs of building materials.

Inflation on building materials is currently 25% higher than it was this time last year and even a few months ago, which means the costs of projects are rising as a whole. Although the cost of materials is rising, the development of new projects and developments shows no signs of slowing down, with the housing market still booming and more people looking to invest their money in property. As a result, the construction industry has continued to thrive and has seen very little impact from the cost of living crisis so far.

Are Construction Projects Still Being Developed?

The simple answer is Yes. From smaller towns such as Redcar seeing heavy levels of investment in the industrial and renewable sector and larger cities such as Manchester and Leeds continuing development works, construction projects show no signs of slowing down. And although some months in terms of awarded developments have seen a downturn, the overall quarter figures for awarded construction developments are incredibly strong.

Awarded developments have only really shown a small decrease in the commercial sector and leisure sector. The industrial and healthcare sector has remained steady in terms of awarded developments. However, some areas are showing staggering growth such as residential developments, education development projects and infrastructure projects. So, if you’re worried that the construction industry might be impacted by the cost of living crisis, then based on the information above and the figures discussed, there’s very little to worry about. However, could everything be about to change if housing targets change?

Is It Worth Joining The Construction Sector?

If you’re currently looking for work or are planning a new career path, then the construction industry could be the place for you. One of the things to remember is people will always need the construction industry to ensure new buildings and areas are being developed. At Wise Global Training, we offer a range of NEBOSH and IOSH courses, which could help you get a leg up in the construction industry. If you’re planning on joining the industry, then why not check out some of the accidents that are most likely to happen and how you can avoid them. Courses can be applied for directly through our website or for more information, please don’t hesitate to get in touch with us.