IDH’s construction industry forecast
With 2022 just around the corner, Business Leader spoke to IDH’s very own managing director Ian Fernandes-Johnson to find out company plans and predictions for the next 12 months, as well as reflecting on the challenges from 2021.
With the Covid-19 pandemic still causing issues, the fallout of COP26, and a year of political uncertainty ahead – what will happen in 2022?
Here are Ian’s predictions for next year.
What are the biggest challenges for the year ahead?
“2022 will be challenging for the construction industry: it will be the brave, bold, forward-thinking businesses, who have looked after their cash flow, that will flourish.
“The industry needs to prepare for cost and availability of materials to worsen, with record highs in percentage increase across all requirements, companies need to start preparing now. The UK skills shortage will also continue to have an impact; wages will rise, and training staff will become paramount.
“Stand by your company values and take pride in what you deliver. Good companies will have some great opportunities to develop in 2022”
“Ultimately, I think 2022 will bring more short-term thinking and we must ensure that diversity improvements don’t take a backwards step. The gap between the top and bottom companies will widen even more. I think we will see record-breaking turnover and profits for certain companies.
“The industry’s digital transformation will start to slow as business becomes increasingly cost-driven. We can expect new, large-scale projects mainly from the public sector – private companies will wait, if they can, to commit to their builds.”
Ian adds “On the whole 2022 will be hugely challenging and it will be brave, bold, forward-thinking businesses, who have looked after cash flow that will flourish. It really is time to stand by your company values and take pride in what you deliver. Good companies will have some great opportunities to develop in 2022”
Do you agree with our construction industry predictions? We’d love to hear your thoughts on what will happen in 2022.