PROJECT MANAGEMENT
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Construction Technology Trends to Watch Out for in 2021
" This increase in debt could have been much higher and was supressed by the Government ’ s coronavirus support measures . Construction companies realise this and are lacking in confidence as they know COVID-19 grants , loans and furlough payments can ’ t last forever ," he said .
As well as reliance on Government support , Halstead attributes low or no confidence in survival amongst construction companies to dwindling order books . The latest IHS Markit / CIPS UK Services PMI data shows construction output declined for the first time in eight months in January .
" PMI data shows shrinking order books in the services sector , which means work is drying-up for construction firms ," adds Halstead . " Locked-down city centres is putting large-scale development projects on hold , which affects companies of all sizes throughout construction supply chains .
“ Revenue for construction firms is disappearing fast and struggling companies are facing up to the prospect that they don ’ t have the cash flow to keep going much longer . Operators throughout the sector need to move quickly to call-in outstanding debts , before it ’ s too late and invoices are lost to insolvency . At this point , they won ’ t be worth the paper they ’ re written on .”
PwC expects to see the UK unemployment rate jump by a record 2.5 percentage points in Q2 , as the government ’ s furlough scheme ends .
Global pressures lead to protracted recoveries Financial constraints are highlighted as the biggest challenge to activity in the Middle East , and a key concern in Asia , according to RICS . Financial impact was the top concern from the crisis in research from PwC ( 71 %, see box ).
Given the economic backdrop , this is likely to intensify . In the US , a net balance of -30 % of respondents expect profit margins
38 April 2021