There’s a ray of light for the UK construction industry post-election, with activity levels hitting a two-year high. According to the S&P Global purchasing managers’ index, the sector’s performance surged from 52.2 in June to 55.3 in July. This uptick is largely attributed to the political stability following the election and the Government’s renewed focus on housing and planning reforms.
All corners of the construction market are looking more positive according to the report. Housing projects have seen a return to growth, commercial activity is stable, and civil engineering is experiencing its most rapid expansion in nearly two and a half years.
This positive momentum is mirrored in the housing market. Halifax’s house price index reports an impressive 0.8% month-on-month increase in July, pushing the average house price to £291,268. While this marks the highest annual growth rate since the start of the year, Halifax warns that affordability challenges and limited property availability persist.
The Bank of England’s recent interest rate cut is expected to further fuel house price growth, albeit modestly. However, the lender emphasises the ongoing hurdles faced by potential homeowners.
With a ray of light in the construction industry, it’s an opportune time for businesses to capitalise on the growth. Here are a few simple things that I would consider from a marketing perspective:
- With budgets tight during the last few years, customers are more focused on value. Clearly communicate how your products can save money, increase efficiency, or improve sustainability.
- Leverage customer testimonials – real-life examples are powerful. Showcase customer success stories to build trust and credibility.
- Don’t cast a wide net. Identify specific construction segments (residential, commercial, infrastructure) and tailor your messaging accordingly.
- Invest in SEO, content marketing, and social media to reach a broader audience and generate leads.