The four horsemen of the apocalypse rode together. In the past decade, their counterparts in UK construction have arrived one by one.<\/p>\n
First came the famine of talent, as Brexit drained the labour pool and sent costs galloping.<\/p>\n
Then, the cruel pestilence of Covid disrupted supply chains and choked material flows.<\/p>\n
War followed on Europe\u2019s doorstep, driving prices higher once more.<\/p>\n
And just as the industry thought it might be turning the corner, a new spectre rode into view: US president Donald Trump, heralding what could prove to be the death of the free trade era.<\/p>\n
But does this new world order really represent the end of days for the UK construction sector?<\/p>\n
Leo Quinn, whose\u00a0 firm Balfour Beatty bestrides the Atlantic, spoke about trade at his company\u2019s results presentation in mid-March. His mind was on the tariffs on steel and aluminium entering the US that had come into force just hours earlier. But his comments neatly summarised the interdependence of main contractors and subcontractors on both sides of the pond.<\/p>\n
\u201cEven when [the risk] is passed down [to subcontractors] and they\u2019re supplying materials
\nand labour, it could still go wrong because they themselves could go bankrupt, and when they
\ngo bankrupt, that liability then comes back to us,\u201d Quinn said. Ensuring the supply chain is bonded or insured can help alleviate some issues, he added. But Quinn was focused on ensuring \u201cthat for changes of this magnitude, that [risk] goes back to the client and doesn\u2019t actually sit with Balfour Beatty or the supply base\u201d.<\/p>\n
His approach is, quite properly, born of self-interest but will nonetheless hearten the entire industry. However, there is a bigger problem.<\/p>\n
Even if we accept that clients will be willing to take on the risks and costs of rising prices, how many of them will be willing or able to invest in a world of higher tariffs?<\/p>\n
Rising construction costs, as the past few years have demonstrated, can lead to clients reining in investment and putting planned projects on hold.<\/p>\n
Some sectors, such as data centres, could remain immune. If Trump\u2019s big plan \u2013 a resurgent US domestic economy \u2013 comes off, American investors could pour money into the relatively stable UK market.<\/p>\n
Keir Starmer might even pull off a tariff deal with The Donald.<\/p>\n
But firms should be prepared for another jolt. The industry has been thrown from the saddle before \u2013 and may yet be again.<\/p>\n","protected":false},"excerpt":{"rendered":"
The four horsemen of the apocalypse rode together. In the past decade, their counterparts in UK construction have arrived one by one. First came the famine of talent, as Brexit drained the labour pool and sent costs galloping. Then, the cruel pestilence of Covid disrupted supply chains and choked material flows. War followed on Europe\u2019s …<\/p>\n","protected":false},"author":129711,"featured_media":502309,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[559,567],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n