Care homes: Opportunity for construction?
Demand for care homes in the UK continues to rise and that presents some unique opportunities for the construction sector. There are currently simply not enough bricks and mortar locations to meet the demand being created by factors such as an ageing population. For those construction sector businesses able to step up and provide options, there is a market share just waiting to be captured.
The size of the care home sector
Expansion in the UK care home sector is ongoing and continuing at a healthy pace. While the market is renowned for being fragmented, with a wide variety of different operators contributing a small share to it, this makes no difference in terms of the construction opportunities that this presents. It’s worth noting that the vast majority of development is being driven by the private side of the sector and this where a substantial amount of the stock is likely to come from to meet the need for the additional 6,700 net new places that are likely to be required each year.
Opportunities for the construction sector
Responding to demographic pressures
The fact that the UK has an ageing population presents a real opportunity for construction. The need for care home buildings that are economically designed and specific to the requirements of the industry is only likely to increase. Those businesses that are able to offer cost effective plans for building and development that enable care home operators to respond to the demographic pressures they face can tap into the opportunities that exist for real business growth.
Supporting the sector in raising standards
The UK care home sector has acquired something of a negative reputation in recent times, as standards are simply not consistent throughout the industry. This has led to negative press and even, in some cases – in combination with other factors -, to care homes going through the process of administration. Smart construction has the potential to help improve conditions in the care home sector by designing efficient buildings that help to deliver operational savings and which cater to specific sector need.
Providing custom facilities
A large number of care homes today are ill equipped to cope with the demand for specific facilities, such as those that are required for dementia care. The construction sector is in a great position to help develop more intuitively designed buildings that accommodate the changing needs of those who define the industry.
Tapping into geographic need
Around 95% of the beds provided in the care home sector are independent, for example provided by the private sector or charities. There are some locations around the country where this demand is much higher than others, such as in urban locations with higher populations and wealthier areas that are popular with retirees. By targeting those locations where there is currently a lack of sector provision, there are opportunities for the construction sector to grow into this market and help to meet need.
The care home sector in the UK is currently in something of a state of flux, which presents significant opportunities for those construction businesses that are able to step up and help meet ongoing need. At RG Group we are always looking for opportunities to support those in the construction sector to thrive.