The construction industry will grow 23 per cent by the end of 2018 and contribute £12bn to the UK economy over the next two years alone, according to the latest forecasts from the Construction Products Association.
Construction output is set to grow by 4.8 per cent in 2014, and will increase further to 5.4 per cent in 2015 - revised from the previous quarter’s forecast of 4.8 per cent following the strong performance of the UK’s economy during the last quarter.
Energy infrastructure will experience the most growth of any sector, with forecasts showing that it will grow by 118.2 per cent by 2018.
The energy sub-sector is forecast to grow 10 per cent in 2015, before work on Round 3 Offshore wind and Hinkley Point C contributes to growth rates of 15 per cent in 2016 and 2017 followed by 25 per cent growth in 2018.
Another area with a strong outlook is roads, which are set to grow by 46.1 per cent by 2018.
Private housing starts are expected to grow 18 per cent in 2014 and 10 per cent in 2015, while the private commercial sector is set to increase 3.7 per cent in 2014 and 6.1 per cent in 2015.
Dr Noble Francis, economics director of the Construction Products Association, said: “Our Forecasts reflect a welcome, recurring theme as growth continues and begins to broaden.
“Short-term activity is still led by private housing, infrastructure and commercial, and areas of public sector construction are showing the first signs of increasing strength. We believe the expansion will continue through 2018.
“Recovery is not a foregone conclusion however, and several important risks remain, primarily around the strength of the UK and Eurozone economies, the policy outcomes following the 2015 General Election and the impact of any supply constraints such as the scarcity of labour and materials.”