What the construction industry is saying about the EU referendum

The EU referendum has cast a shadow over the construction industry since the turn of the year. Reports from the likes of the Office of National Statistics and the CIPS/Markit construction PMI show infrastructure and housing projects put on hold and growth stagnating.

As Britain goes to the polls today to decide whether on not to remain apart of the European Union, UK Construction Online looks at what the industry is saying.

The view from the Union of Construction, Allied Trades and Technicians (UCATT) is that leaving the EU would be huge mistake for the UK’s economy. Brian Rye, Acting General Secretary told UK Construction Online: “It will make things worse. The inevitable economic slowdown will lead to companies ditching what little training they are currently undertaking.”

Jeremy Blackburn, Head of Policy and Parliamentary Affairs for RICS spoke to UK Construction Online on how leaving the EU might impact on the skill shortage facing the industry. He said: “Labour from across the EU is already vital to the UK construction sector. London has become particularly reliant on importing skilled labour. Leaving the EU would exacerbate this situation; with the potential knock on of greater costs as labour demand outstrips supply.

“In a post-Brexit world though, control of our immigration policy would mean the ability to target certain trades and professions on the world stage. The need for workers is however driven by overall economic activity and that may lessen after an exit from the single market and whilst trade negotiations are on-going.”

Sarah MacMonagle, Head of External Affairs at the Federation of Master Builders said that a Brexit might amplify the skills shortage: “One of the major things is if we did leave the EU, there is a real risk of construction skills shortage. It will also discourage migrant workers from coming to the UK.”

The government is committed to a massive programme of house building, an area of construction that has experienced a slowdown in 2016, which analysts have attributed to uncertainty caused by the Brexit vote.

The National Housing Federation warned its members in April that a vote to leave the EU “has the potential to increase the cost of borrowing for associations” in the short-term.

London’s largest private housebuilder, Galliard Homes, have warned that leaving the European Union could see construction costs increase by 15%.

The Company stated: “If the UK is not part of the EU then industry construction costs could rise by up to 15% since currently construction materials imported from and exported to the EU are free of duty and taxes.

“Many site/construction staff working in London are people who originate from countries across the EU.”

Managing Director Don O Sullivan gave his support to Remain saying: ““This is clearly a big decision for all, with many competing factors and issues but we at Galliard Homes strongly believe that it is better for the short and long term growth of the London economy and the wider UK for the country to remain within the EU.”

A poll published by the Federation of Master Builders revealed that 88% of small construction companies would decide how to cast their vote on personal beliefs rather than what is necessarily better for business.

Brian Berry, Chief Executive of the FMB, said of these findings: “It just goes to show that although it’s important to explore the business case for leaving or remaining within the EU, for many people their decision will be based first and foremost on other drivers. These could include the desire to be part of the wider European community or a compulsion to reclaim British national sovereignty.”

Playing a significant part in both the construction sector and the UK economy, the automotive industry has had its say. Mike Hawes, SMMT Chief Executive, commented: “UK Automotive is globally competitive, securing record levels of investment, creating tens of thousands of jobs annually and exporting to over 100 countries. We want this success to continue rather than jeopardise it by increasing costs, making our trading relationships uncertain and creating new barriers to our single biggest and most important market, Europe. Remaining will allow the UK to retain the influence on which the unique and successful UK automotive sector depends.”

The Freight Transport Association (FTA) decided as an organisation to “remain strictly neutral” and have instead offered its members an overview of the permutations of both scenarios.

The post What the construction industry is saying about the EU referendum appeared first on UK Construction Online.