These days, it’s hard enough predicting what will happen in the next fortnight, let alone a year ahead. But if you want my predictions for 2022, I believe there will be plenty of opportunities for fit and able construction firms to win work and grow their businesses.
Hudson Contract clients tend to be tier-two contractors and specialist subcontractors which are owner managed, dynamic and quick on their feet with lower overheads and cost structures enabling them to deal with the ups and downs of market volatility. As we have seen throughout this year, old-fashioned firms which sometimes look down on the use of subbies will find themselves struggling to survive in these fast-changing times.
In the wider economy, there seems to be no shortage of money sloshing around for housebuilding programmes, renovation projects and infrastructure investment. Compared to many parts of the world, the UK remains a safe haven for international money with wealthy investors attracted by our solid legal system and strong housing market. Big funds are looking at our build-to-rent sector and seeing good opportunities for steady returns.
Construction costs will continue to rise and there will be no let up in material and labour shortages as global production and supply continue to be disrupted by Covid.
The removal of the red diesel rebate from April will drive up fuel costs and hit groundworks contractors and quarrying companies the hardest. The fallout from the high-rise cladding scandal will also continue with the government under pressure to protect leaseholders from the costs of building safety works.
Sooner or later, the Bank of England will hike interest rates, which could sink some borrowers. Tightening credit conditions could also impact the sustainability of some big city centre developments coming to market, which in turn would hit the contractors delivering these schemes. In any case, the estate agents are saying more people are moving out of cities and working online.
Covid only adds to the unpredictability of the year ahead, with the disease rearing its head again just as we thought it was behind us.
Among all this uncertainty, we can be sure of one thing: there will be new opportunities for the most dynamic companies regardless because the nation will always need roofs over heads, power, water and transport infrastructure.
And Hudson Contract will be here to support the industry whatever happens in 2022, helping our clients to gain risk-free access to self-employed labour and to comply with wave after wave of tax and employment legislation. It’s our job to deal with the red tape so they can get on with growing their businesses.
Managing Director, Hudson ContractMore from this expert
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