UK sees surge in new construction businesses
By Mike Hayes31 January 2023
The number of construction companies in the UK has grown by 17% in the past five years, according to a new study.
The findings – collated by Business Name Generator, using figures from the Office of National Statistics – appear to show that demand for construction remains high in the country, despite the recent economic difficulties.
The company said 55,000 new construction businesses had been registered over its analysis period.
Between 2021 and 2022 alone, it said, more than 15,000 new businesses were established.
The findings seem to corroborate the latest report from the Construction Skills Network, which predicts that an extra 225,000 construction workers will be required in the UK by 2027.
In its own report, Business Name Generator said the growth puts construction at number three, in terms of high-growth industries in the UK, behind only property (18.81%) and transport & storage (26.42%).
Chloe Chai of Business Name Generator, said, “The 17% increase in the number of companies in the UK construction industry is a positive sign of growth and resilience in the face of economic challenges.
“However, as we look ahead to 2023, construction businesses must remain vigilant and proactively address financial constraints to continue this upward trajectory. It’s important for companies to seek out new opportunities and adapt to the changing market to maintain this growth and stay competitive in the industry.”
Chai added, “Sole proprietorships comprise 56% of the UK private sector business population. Plus, construction contains the most self-employed workers of any industry. Therefore, for those looking to become a sole trader, being aware of both the advantages and risks of establishing a construction company is essential.”