Brexit: How Will it Affect the UK Construction Industry?

Since the 2015 General Election, Britain has seen many changes in the way that the UK is run, and this year is no different. Yes, we are talking about the hot topic of the moment – the EU Referendum.

The EU referendum has turned in a rather controversial issue, with people from every industry having their say on whether Britain should stay or leave. This is because an EU exit will have profound effects on how Britain will conduct future business – especially in the construction industry. Reassuringly, a survey conducted by Smith and Williamson found that only 15% of construction company executives favoured leaving the European Union.

One of the major issues that leaving the EU would present to the construction industry concerns access to labour. Presently, the UK is experiencing a huge skills shortage across the construction industry, which means that we are relying heavily on foreign workers to come over and help fill the gap.

One of the fundamental values of the EU is free movement, which makes immigration around EU counties relatively easy and stress-free. If Britain exits the EU then emigration into the UK will become more difficult, discouraging skilled workers from entering the country and focusing on countries still within the EU.  On a positive note, there will be more jobs within the construction industry, but fewer people to fill them.

The EU is a trading union, which has helped break down barriers that make it difficult for companies to do business and invest in each other’s businesses. With the threat of a Brexit looming, multimillion-pound manufacturing giants have already expressed concerns about investing in an independent UK. One of the biggest advantages to being in the EU is that we are granted free trade between member nations. This makes it easier and cheaper for British companies to export their goods and - more importantly for the construction industry - building materials.

Even though the vast majority of construction companies are currently in favour of staying in the EU, it is important to look at the counter arguments of the 15% minority. For instance, the chairman of JCB plans to vote in favour of a Brexit because it “could cut the costs of bureaucracy so much that any additional costs of leaving the EU would be easily covered”. He also disagrees with the claims that it will make trade more difficult with other EU countries because “it is in everyone’s interests to trade openly and freely.”

It is hard to predict what knock-on effect a Brexit will have on the UK’s construction industry because no country has ever left the EU before. Over the coming months we are going to hear a lot of arguments to stay or leave, and possibly a lot of contradictory information about what will happen if we do decide to exit. At the end of the day, it is up to us as individuals to come to an educated decision as to whether we think it will be beneficial for the UK to stay or leave.

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