The past couple of years have been difficult for the global economy, but we are gradually seeing improvements.
Some of these improvements are due to the construction industry. An increased focus on new green housing developments, and bringing existing homes up to modern standards, has had a positive knock-on effect on the rest of the economy. New buildings require skilled trades-people to build them, people to produce bricks, roofing materials, and timber, people to transport the roofing materials and other supplies to the construction site, and people to install plumbing, heating, and wiring.
More Jobs Means More Money Changing Hands
The range of jobs that benefit from the construction industry is huge, and the knock-on effect of those extra jobs is even bigger. People who have secure jobs are able to reduce their personal debt. In addition, secure employment means increased spending, and that in turn stimulates the economy.
Many unrelated businesses are currently experiencing reduced morale from a phenomenon known as “recession fatigue”. This can lead to reduced customer service standards, lower productivity, fewer sales, higher costs, and lower profits. When the economy starts to improve, morale can improve, and as a result those unrelated sectors can also see improvements.
Improving Job Confidence
Employees in any sector, be it construction, retail, or service, suffer from job anxiety, especially when there is a recession going on. Reduced job confidence means less spending and can mean it takes us even longer to recover from the recession.
The construction industry is facing its own struggles. Rising house prices and more restrictive borrowing terms mean that there is less demand for new builds. However, this is offset slightly by the recent government push towards green, or “zero carbon” housing. Sustainable developments made with eco-friendly roofing materials, sustainable timbers, and other materials are in high demand, and this is creating a number of jobs.
In the long term, more government support for the construction industry would go a long way towards improving the economy. The construction industry would be the first to see improvements, just as it is usually one of the first sectors to suffer when the economy sees a downturn. As a result of the improvements in the construction world, the manufacturing, transport, and other sectors would also see positive changes.
Once the economy begins to improve, this means that more people will be able to clear their personal debts, and in the long term take out their first mortgages, or move up the housing ladder. As people’s financial positions improve, this allows them to increase their discretionary spending.
Residential Construction is Not The Only Answer
Residential construction is the first thing that most people think of, but other construction projects would also benefit the economy. Improvements to the country’s infrastructure (such as replacing old power plants with renewable energy sources), would help the country to reach their green targets, secure the country’s high-tech future, and also create a wide range of jobs in the medium term.