Hauliers serving the construction industry may witness some slippage in business volumes in the next three years as the industry slows. According to a forecast by the Construction Products Association, construction industry output grew 2.6% last year, but growth will slow to: 1.1% this year, 1.2% in 2009 and just 0.7% in 2010.
Francis Noble, the association's economics policy development director, says: "The construction industry will not be immune to the deterioration in UK economic prospects
in the wake of current problems in world financial markets. Slower private housing and commercial property markets are forecast to dampen related construction activity, stalling overall private sector construction growth.
"The prompt and effective implementation of the government's investment plans outlined in the 2007 Compreh-ensive Spending Review will be central to sustaining an overall expansion in construction activity over the next three years." While there is expected to be a modest pick up in new road building, spending on existing road maintenance is expected to fall. There is also expected to be a large drop-off in warehouse building as the industrial sector slows until 2010 when a rebound is predicted. However, there remains plenty of opportunity for 3PLs to prosper in construction logistics.
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