December 2016 saw the biggest rise in new orders for nearly a year, despite worries that the Brexit vote would impair activity in the sector.
Material costs are up however with the weaker pound meaning they’re at a five and a half year high. Labour costs appear to be holding steady.
One of the areas of growth in the North East construction sector is student accommodation. Commercial builders in Newcastle are seeing an increase in demand for high quality affordable housing as the student population continues to increase.
“It’s encouraging that confidence in the construction sector is growing and that commercial construction companies in the North East continue to develop and expand. In this respect we want to encourage young people to join this sector, as we need to plug the skills gap to meet demand. Construction really is a great industry.”
— Bryan Watson, Project Director at J3
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