Newcastle is a thriving part of the North East and has been for decades. Thanks to its vibrant economy and experienced workforce, the region is growing rapidly, and the city is expected to grow even further between 2024 and 2026.
In such a competitive market, with a cost of living crisis, this can be seen as great news by many. While this is positive news for Newcastle’s economy, it will have a major effect on the area’s construction market, and businesses will need to adapt in order to survive and thrive in this new environment. If you’re a construction worker or business leader, here are some potential market trends we’re likely to see over the coming years and what they might mean for your business.
With a growing economy and population, there will likely be increased demand for new office buildings, shops, apartments, and homes to accommodate business expansion and people moving to the area. This should drive an uptick in new construction projects and keep companies and suppliers busy.
With a stronger economy, more businesses and industries may locate or expand in Newcastle, creating new employment opportunities for residents. This could lower unemployment rates and also bring more people into the area. This offers an exciting opportunity for greater construction of residential properties and a need to convert existing homes into flats or houses of multiple occupancy to accommodate more people.
With more people comes more pest problems, particularly in highly populated areas. Pest can be a major issue, particularly for construction sites, as they can chew through wires and cause a health hazard. Working with experienced Newcastle pest controllers like the team at Invicta Environmental will help to deal with sightings of pests before they become major problems.
Higher demand in a growing market could make construction materials and labour more expensive. While construction companies could benefit from being able to charge higher prices, passing this cost on to buyers could cause issues in the long term and make it harder to sell properties quickly. Also, ongoing price hikes will affect project timelines, particularly with materials becoming more costly and budgets being stretched.
As the city gets busier, more roads, hospitals, GP surgeries, schools and other public services will be required. The local government will have more reason to invest in infrastructure projects like roads, bridges, transit systems, utilities, etc., to support economic expansion. This will provide opportunities for civil engineering and public works construction firms.
With more businesses set to move into Newcastle or expand to a larger property, older buildings may be renovated and redeveloped rather than building new ones. This would benefit specialised construction contractors who work on restoration and redevelopment, particularly for listed buildings. Newcastle has over 800 listed buildings, and for contractors that specialise in renovating them, this market boom could be a great growth opportunity.
The construction market in Newcastle has always been vibrant and busy, but with further economic growth expected, it’ll get even more so over the coming years. Business leaders need to be prepared to adapt to survive and thrive in this competitive but exciting market. These trends are the obvious ones that we’re already seeing, but as the years progress, things will change, and specific sectors will see more changes than others. Stay ahead by using these articles and following local blogs. You’ll then be able to make the most of the many opportunities that the rising Newcastle economy has to offer.