Pictured above: Phil Wilson
The construction sector deserves greater recognition and the
Coalition needs to show that it understands the impact and
significant contribution it makes to the wider economy. That's the
view of the West Midlands Centre for Constructing Excellence
(WMCCE), which champions and promotes best practice in the sector.
The latest economic data reinforces the important role of the
construction sector, which accounted for a third of total GDP
growth in the last quarter.
Phil Wilson, executive director at WMCCE, comments:
"These figures reflect the significant contribution of the
construction sector to the wider economy. While we must acknowledge
that the statistics were perhaps boosted by the delay to projects
during the first quarter, the fact remains that a construction
project is a key driver for economic growth.
"Firstly the contractor who leads the project can spread the
wealth among the wider supply chain of SMEs, but once the project
is complete it creates a domino effect in the local area. Whether
it's a shopping centre, new hospital or office building, the
finished building becomes a catalyst for growth in itself, either
bringing with it new jobs, increasing house prices or attracting
new businesses to the area."
Figures from the UK Contractors Group and CBI show the impact of
construction spending. Their recent report estimated that every
£1 spent on construction generated an extra £2.84 for
the UK economy and highlights that construction is one of the most
effective areas of spend for government stimulus.
Phil Wilson continues:
"There is evidence to suggest that the last quarter's figures
were also boosted by projects involved in the Kickstart housing
delivery programme - yet further evidence of the benefits that
Government stimulus can bring. But, too often the construction
sector is overshadowed by other areas of the economy and this will
have a detrimental impact on the pace of recovery if support for
future building and infrastructure projects isn't forthcoming.
"While we recognise that tough decisions need to be made, it has
been disappointing to see the extent to which the Government has
slashed important projects that were set to reignite the
construction sector, such as large scale social housing projects
and the Building Schools for the Future programme.
"Even BSF projects that were thought to be protected have been
reduced significantly in some parts of the region. However, on the
positive side, we do have a number of flagship projects in the
region that will deliver real opportunities for growth both within
the sector and for the wider region. These include major
infrastructure projects such as Birmingham New Street station, the
extension of the West Midlands tram network and the M6 upgrade.
"In this climate of austerity, it's more important than ever to
ensure that construction businesses of all sizes deliver projects
as efficiently as possible. This is what best practice is all about
and it can make the difference between delivering a project
profitably or not."