When media covered news about the Brexit in 2016, many people had many concerns especially on how it was going to affect the constructions. Some of the concerns they had were:
If there will be a more or less red tape that will be expected to be followed.
How Brexit will affect the export and import of the materials used in the construction industry.
How the Brexit will assist in solving the shortage of skills.
During the debate, the main focus was on major issues of immigration and the economy. From statistics, the construction industry in the UK employees so many people in the UK. Due to increased demand in housing, the construction in the Uk continues to grow each day. However, from the recent uncertainty of Brexit, many professionals in the construction sector have so many concerns on how the Brexit is going to affect negatively this industry. Many people have predicted that marketing conditions will deteriorate.
Economy
Brexit which literally means the withdrawal of Britain state from EU is one of the major issues that is going the affect the economy. A slow economy will also affect government investment and spending, especially in new housing projects. Thus, companies will start to fight in getting any project which available by reducing their costs since projects will reduce.
Brexit which literally means the withdrawal of Britain state from EU is one of the major issues that is going the affect the economy. A slow economy will also affect government investment and spending, especially in new housing projects. Thus, companies will start to fight in getting any project available by reducing their costs since projects will reduce.
Brexit which literally means the withdrawal of Britain state from EU is one of the major issues that is going the effect the economy. A slow economy will also affect government investment and spending, especially in new housing projects. Thus, companies will start to fight in getting any project available by reducing their costs since projects will reduce.
Brexit which literally means the withdrawal of Britain state from EU is one of the major issues that is going the affect the economy. A slow economy will also affect government investment and spending, especially in new housing projects. Thus, companies will start to fight in getting any project available by reducing their costs since projects will reduce.stent budget reassessment and cuts in all sectors.movement of labour, instead, they concentrate on hiring workers with high skills. Since this is not expected to happen, there is a high likelihood of a shortage of labour that will lead to projects costing higher.
Reduced funding
The United Kingdom benefits by receiving billions of investments especially on infrastructure projects funded by European investment Fund and European Investment Bank. Also, these financial institutions do lend millions of dollars to SMEs in the UK.
By breaking the Brexit deal, many revenue streams will be lost, a thing which is going to have a huge negative impact especially in delivering large sprojects, for instance, the high-speed railway. Even though some people have suggested that these revenue streams can be replaced through the money saved in EU membership fees, this will not be possible due to consistent budget reassessment and cuts in all sectors.
Decreased accessibility to credit.
Brexit will result in many foreigners withdrawing all their funds from the property market in the UK, thus resulting in increased availability of the original properties. The uncertainty of economic stability implies that banks will face a major challenge from loan borrowers. This will affect the person loans guarantor loans and bad credit loans, thus the accessibility to credit will be decreased. Imagine, of construction sectors cannot access credit, how will they survive?
Material costs
By exiting the Brexit deal, not only will be the free movement of labour be affected but also free movements of goods will no longer be there between the EU and the UK. Information from the departments of Business has revealed that about two-thirds of the materials used in construction is normally imported from Europe. Since this will be curtailed, it will mean quantities that are imported will be limited and importers will be charged high taxes, thus becoming a huge problem in the construction industry.
The debate which surrounds the Brexit has to lead to the fall in the exchange rate of the pound sterling up to 20 percent. If it continues to fall, it will also mean that all construction materials which are imported will be more expensive due to devalued currency.
Even if many have said that this will be a good idea as there will be an increased focus on manufacturing British goods, they have not known how this will impact negatively on them. High tariffs are likely to be imposed on the UK products through the European Union regions, thus causing more trouble for the UK and British enterprises. Although Theresa May saw this kind of situation and decided to establish a deal of withdrawing fairing from the EU so that the British trade continues to be protected through the free movement of good, this deal may not be successful.
Remember that by having free trade agreements, it makes member states access easily materials, tools and other resources that they want. In case these agreements will not be secured, then the cost resources will increase.
Conclusion
The ambiguity and uncertainty which surround the Brexit make it difficult for one to predict, what is likely to happen to the construction industry. You cannot deny that there are so many negative things that surround the departure of the UK from the European Union and there are also some positive things, especially for the local contractors.
Therefore, even if it is not easy to know what might happen, you must know the contractors in the UK will continue to have opportunities in the construction industry.
With the Brexit in Mind, the construction industry and government of the UK must use this opportunity in coming up with long term programs that will encourage many people to enter this industry. These programs must encourage the women, youth and other people to gladly join the construction sector.