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How construction industry can thrive in post Brexit UK

Published on: 10 Aug 2019
Reading time: Approx 6 mins

Despite the picture that the news channels portray, there are good reasons to remain optimistic about the forecast of the construction industry in the UK. Circumstances are conducive for companies that can present a competitive advantage or unique selling proposition.

To protect themselves from the potential difficulties and challenges ahead, companies must consider reviewing and developing their business strategy, revolving around five key pillars.

The key parameters of a business strategy in the UK construction industry

  • The priority is to establish an in-depth understanding of the core drivers of profitability across the business collaterals.
  • Then the secondary focus must be on operational preeminence and commercial vigour to actualize a booming organizational and financial situation that will yield further investment.

Once these aspects are streamlined, companies can establish a competitive advantage through innovation and chase profitable growth.

The key aspects of the construction market are estimated to remain durable, and conditions are conducive for proactive contractors to develop a competitive advantage against conventionally minded peers.

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What are the economic implications of Brexit

  • Increasing unpredictability based on post Brexit scenarios.
  • Most economists are predicting low economic growth of 1.5-2% a year over the next few years driven by short term impact of Brexit.
  • Rising interest rates compel businesses and households to cut down expenses.
  • As the construction market witnessed a growth by 5.2% a year between 2014 and 2017, growth is anticipated to average 1.2 % a year until 2020.
  • Public spending is a crucial source of business for the sector stands at 40% of the GDP but with the UK governments compressing its fiscal policy, further cuts are anticipated.
  • This indicates the accelerated growth of the construction sector.

Challenges & opportunities

  • A case for innovation to create differentiation and create margin opportunities.
  • In turn, high margins can attract money to invest in innovation, IT and human capital.
  • Opportunities for new market entrants to swiftly knock over low barriers to entry and exhibit a lucrative proposition to buyers who are focused on cutting prices and imposing compelling terms and conditions.
  • Opportunity to use technology to drive competitive advantage in a sector that persistently has lacked it.
Industrial Strategy Fundamentals of the UK Construction Sector synergise with UK Visa Business Plans – Click here

If you are an entrepreneur or company seeking to expand your business in UK, there are various routes that you can consider including Innovator Visa, Start-up Visa, Tier 1 Investor Visa and Tier 2 sponsor licence etc. We have qualified experts with experience of advising and assisting businesses and individuals for UK visas who can assist you with the development of your business in the UK.

For guidance on your application, write in your query at Being in the UK immigration environment for more than 12 years, Immigration Advisors at SmartMove have adequate knowledge with more-than-adequate experience in UK migration assistance to guide you through your legal immigration cases, ensuring you do not miss out on anything crucial.

You can connect with our associates at any one of our offices in Mumbai, Delhi and Bengaluru. You can also connect with us telephonically or through Skype for the same level of assistance.

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