Constructive Thinking - The Economy

‘The construction sector has been hit hard, quite clearly, and it appears it’ll be some time before output returns to anything like what it was earlier in the year. 

However, the sector has proved its resilience in the past and I’m confident that we’ll emerge from this in a different but potentially better place.’

‘We’ve seen our industry, particularly the brick industry, really close down - quite rightly, during the pandemic. Though we’ve seen signs of it starting back up, it’s been really challenging. Also, the economy is worrying me. We might be talking about a V or U-shaped recession, or in total contrast, a bump and sudden acceleration. The problem is that no-one really knows.

Regardless of who you voted for, we’re clearly in uncharted times, and the furlough system that the Government has brought in has been quite extraordinary given the circumstances. I don’t consider it a political statement to say that I consider it to be a positive move for the nation. It’s something that will help small, medium, and large businesses in the future.’

‘I think that when this is all over, within a year or so we’ll be in the biggest recession I’ve seen.

I think houses that have already been planned or are already sold, will continue to be built. But after that, the houses that haven’t yet been ordered - they’re the ones we won’t see.’

‘My concerns about the future are around trying to understand what housebuilding will look like moving forward. Will people have the confidence and job security to buy houses? Will the money be available for the lending? And what will the tax situation be?

I’d guess that with the support measures that the Government has put in place during the lockdown, that that money will have to be recovered at some stage, and I assume that will happen through tax. That could have a major impact on people’s disposable income, and indeed the wider economy. I think these questions will determine whether people are able to afford to move house, be it moving up the property ladder, or simply getting on that ladder in the first place.

Hopefully, the Government will invest in the construction industry and use it to drive the economy. Our industry has a 1:3 multiplier effect in the economy, and I hope there will be a push to deliver affordable, social housing. There’s been a lot of talk about the housing shortage and the need to build more homes - since the turn of the millennium, really! - but with very little action, so maybe this is the opportunity to kickstart that process and properly address the shortage.’