Why is the Northern Powerhouse so important to the construction industry?
Following the outcome of the EU referendum vote in June 2016, the impact of Brexit is yet to be seen on the construction and property markets. One of the biggest concerns is that commercial property funds will be significantly reduced as a result of Brexit, and the uncertainty of what the British economy will look like over time. This is a concern for the construction industry who may suffer the impact of growth prospects being downgraded.
Positive Northern Powerhouse changes since the EU Referendum
Following the EU referendum, a new Northern Powerhouse Minister, Andrew Percy, has been appointed. Lord O’Neill has also been reappointed as Commercial Secretary to the Treasury. These are good signs that the Government continues to commit to the Northern Powerhouse despite Brexit.
Potential impacts on the construction industry
There have already been some steps forward for the Northern Powerhouse since the EU referendum, including Mr Percy signing off the devolution deal for Sheffield. This is particularly significant because if funding is cut and the Northern Powerhouse loses out, this could have a terrible impact on both the construction and infrastructure sectors across the UK. Economies in the north of England are set to be affected more strongly by Brexit than the rest of the UK on average, which highlights how important it is to protect and continue to work towards the Northern Powerhouse vision.
How does the Northern Powerhouse benefit the construction industry?
As the Northern Powerhouse booms, the construction industry will also boom. This is because as economies within the Northern cities of the UK grow there will continue to be increased demand for development of housing, infrastructure, retail and commercial builds, as well as renovations and refurbishment projects.
Supporting the Northern Powerhouse
The RG Group, along with many others within the construction industry, are strong supporters of the Northern Powerhouse. It is clear that the initiative presents strong economic benefits to the north, across Leeds, Manchester, Sheffield and other major cities. Construction companies play a major role in this development and growth, since Government funding must be funnelled into the design and construction of new housing and infrastructure.
The investment into the Northern Powerhouse not only boosts the economy, but creates jobs both in the northern cities and within the construction industry too. For a sector that is seeing a decline in workers, this is extremely important for the continued growth and improvement of the construction industry nationwide.
The RG Group has completed a range of bespoke retail, housing and commercial construction projects, and we are passionate about recruiting new people to work within our team. If you’re interested in working with us, get in touch by calling 01732 526 850 today.