As the uncertainty about the outcome of Brexit grows, UK companies are spending less money on large construction operations. They are saving up because they don’t know what the future will bring and are not spending as much as they have in the past few years. The political environment is very unstable, and there is no telling what the government will decide since they are so divided. Even within the political parties themselves, there is no clear direction, so it remains uncertain when there will be a solid solution for the political crisis.
This uncertainty is reflected in every sector of the economy, and it’s painful to see that the UK is already suffering from a decision they made two years ago.
If you’re in the construction business, there is no doubt that the costs will rise substantially. For construction projects that were done in the past, a lot of equipment was sourced from the US and the EU. Obviously, the costs of using that equipment will become much more expensive, and transportation is going to take longer due to customs issues.
Fortunately, long-term investments are not as bleak as you might expect. The United Kingdom ranks rather high when it comes to the prospects of post-Brexit infrastructure investments compared to other countries on a global scale. And even though the predicted economic growth is not very strong while the risk of investment is high, it still rates comparatively well on a global scale.
Among many others, there are three things the UK has to do to keep the construction market running:
- Go digital, as the virtual environment saves a lot of money for construction companies.
- Invest in manufacturing the equipment and base modules of the construction itself. Importing is becoming more expensive, so the more you make yourself, the more you save.
- Deliver performance – do things that can deliver more for less. Optimize and streamline processes to reduce time-consuming bureaucracy.
Let’s hope the doom scenario is averted and that Brexit won’t be as disastrous as everyone thinks it will be.
Learn more about equipment rental software here: