UK construction industry optimistic for year ahead

UK construction industry leaders are optimistic of increased sales and business revenue in the year ahead, according to new research from CEO organisation Vistage.

The Vistage Mid-Sized Business Confidence Index showed 73% of CEOs in the construction sector report significantly improved financial conditions and strongly increased optimism.

The majority, (81%) expected business revenue will increase in the next 12 months. No businesses expected sales revenue to fall. Construction industry CEOs also expected a 64% increase in profits over the coming year.

With increased revenue on the cards, the report found that industry leaders were now looking at inward investments in capital and personnel.

Two thirds (64%) of CEOs planned to increase their expenditure on capital investments, while 29% planned to maintain existing levels of investments, and only 7% reported a planned reduction.

Almost three-quarters of CEOs also planned to increase their total numbers of employees in the next 12 months. A third expected to retain the same amount of employees, while just 2% expected a decrease.

Steve Gilroy, CEO of Vistage, said, “These figures show the recent blossoming of confidence amongst Britain's mid-sized construction businesses, and are matched by my own conversations with dozens of CEOs and business owners in recent weeks at Vistage events around the UK.

"Business owners are reporting that they are investing again; they are recruiting; and many already have buoyant order books that they are now tooling up to deliver."