06.09.16

Survey: UK Building Sector Confident in Face of Brexit

ECA Brexit Survey 9.2016

A new survey has found that the building services engineering sector, which makes up 40 percent of the UK’s construction and maintenance industry, believes it will successfully weather the outcome of Brexit over the next few years.

According to the survey, conducted by the  Electrical Contractors' Association (ECA), the Building Engineering Services Association (BESA) and Scotland’s trade association for the electrical industry SELECT, almost half of survey respondents (46 percent) believe Brexit will have a positive impact on their company in just five years’ time, with less than one in five (19 percent) saying it will have a negative impact. (23 percent said it would have no discernible impact). However, the largest contractors in the survey (with over £20 million turnover) are slightly less optimistic about the short-term business prospects than smaller contractors.

The sector puts maintaining access to the EU ‘Single Market’ at the top of its list of Brexit aspirations, closely followed by more control of employment law and the need to negotiate non-EU trade deals. Despite the general positivity about Brexit, 47 percent of respondents say they believe the cost of materials will rise as a result, while only 22 percent do not think Brexit will cause this to happen.

 “No matter how our relationship with Europe develops, our sector has a huge role to play in achieving UK business growth. This includes providing skilled jobs, fully functional buildings and infrastructure, and UK energy security,” said ECA CEO Steve Bratt. “To help us achieve these aims, it’s vital that we know the initial views of our sector as we head towards Brexit.  Significantly, contractors are telling us that they want the UK to maintain access to the Single Market, while they less concerned about ensuring freedom of movement.”

Reflecting a general tendency to use skilled UK rather than EU workers, the vast majority (92 percent) of respondents say they ‘do not rely on EU migrant workers’, and only 25 percent agree that Brexit would ‘worsen the shortage of qualified workers’. In addition, just one in six respondents (17 percent) said that maintaining freedom of movement was their top priority. Some 71 percent of the largest contractors (over £20 million turnover) report they did not rely on EU workers, indicating more reliance than the average for the sector.

“Our survey clearly shows that many contractors are conditionally optimistic in the wake of the Brexit vote. In fact, putting these findings alongside the brighter than expected data for the UK economy as a whole gives us a much more upbeat feel than could reasonably have been predicted back in June,” said BESA Chief Executive Paul McLaughlin. “The survey provides extremely valuable feedback about what matters most to contractors as the UK sets about negotiating a new relationship with Europe. As a result, we will draw up an action plan for the building engineering services sector to focus our lobbying efforts in the coming months."

ECA
SELECT