Times remain tough for the building sector, but firms are adapting to the uncertainty, survey shows

According to the latest Master Builders State of the Sector survey, the building sector is facing ongoing challenges, but firms are adapting to the uncertainty, according to a report. The survey indicates a slight improvement in companies' confidence in their pipeline, with 68 percent describing their potential forward work as strong or steady, up from 64 percent last year.

This suggests that businesses are more resilient and better at managing their cash flow compared to past years, according to Ankit Sharma, Chief Executive of Master Builders.

However, the report highlights that challengess still persist. Cost pressures and issues with consenting have resurfaced as significant obstacles. Delays in obtaining consent can lead to additional costs, making it crucial for businesses to manage these delays effectively. The most impactful change Sharma suggests is greater consistency across consenting authorities to streamline the process.

Despite these hurdles, consumer demand remains a top concern, cited by 87 percent of Master Builders as a major challenge. While the initial signs of economic recovery at the end of last year contributed to an uplift in the forward-looking pipeline, the Iran conflict and an oil price shock disrupted this progress. However, Sharma noted that there is a return to normalcy in the way people are thinking about the Iran conflict, and oil prices have been more stable than initially anticipated. Consequently, both business and consumer confidence are beginning to pick up.