The design community reacts to Brexit

Latest News Wed, Dec 7, 2016 11:33 AM

NBS has gathered findings from its latest survey into the effects of Brexit on the construction industry, six months since the decision was announced.

NBS, the leading global provider of construction information and construction knowledge management services, wanted to gain perspective on the effects of Brexit from those in the design community.

Those who design buildings are often good predictors of what will happen to the broader construction industry; if design work tails off, so too in time will construction output.

Having already carried out the survey in June and July, the findings show the design community follow a pattern seen elsewhere; a sudden and pronounced dip immediately following the referendum result, followed by a bounce back.

The survey asked questions on the effects on practices’ workload, staffing levels, the construction industry as a whole and effects on projects.

Predictions for practices’ workloads have markedly improved. In July, only seven percent felt their workloads would increase in the coming 12 months. That figure has risen to nearly a quarter, the same number who expects a decrease. 42 percent anticipate no change.

The latest figures around projected staffing levels are more stable than were seen in July. A quarter sees staffing levels falling in the next 12 months. 19 percent foresee growth, compared with only five percent in July. Almost a half foresees no change in their staffing levels.

Designers are less negative than they were immediately after the decision. The number expecting the construction industry to shrink is still high, at 44 percent, but has fallen back from 61 percent.

Whilst people are less pessimistic about the year to come, the immediate effects of the Brexit decision are being increasingly felt. Where one in five had had a project cancelled by July, that figure has now risen to a quarter. Of those who have had projects cancelled or put on hold, those projects account for, on average, 21 percent of current projects.

Chief Executive of NBS, Richard Waterhouse, said: “There remains a significant, and at times heartfelt, divide between those who favour our leaving the EU and those who do not.

“Construction industry forecasts suggest that whilst we are not heading for a recession, construction output has been significantly dampened because of the Brexit decision and it is uncertainty, rather than speculation about the ultimate form Brexit takes, that is the root cause.

“It is clear that we will be leaving the EU, but what form that exit takes is unclear and very important.”

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