Brexit's blowback

the U.K.'s historic vote to leave the European Union doesn't bode well for Britain's construction sector

 
img

An illustration of the proposed nuclear plant in Somerset, England

Britons’ historic Brexit vote shoved the U.K. into unfamiliar territory. While the ultimate effects of the vote are unclear—actual departure from the European Union (EU) might not happen for years—the news was bad from the start for the U.K.'s construction sector.

Exhibit A: A proposed £18 billion nuclear power plant project in Somerset, England might never happen. French sponsor EDF is “extremely unlikely” to continue with the project because of economic uncertainty, the Independent newspaper reported. Another potential casualty: an £18.6 billion project to construct a third runway at Heathrow Airport in London, England.

—Richard Beresford, National Federation of Builders, to Global Construction Review

The construction industry in the U.K. was originally forecast to grow 4 percent in 2017, but that estimate sank to 1.5 percent after the referendum decision, according to Timetric's Construction Intelligence Center. Foreign organizations backing projects in the U.K. are taking stock of new risks, and some U.K. organizations are seeing portfolios shrink. In July, two major British architecture firms announced they were laying off staff due to stalled projects and economic volatility. And project managers may soon have to deal with a labor shortage—12 percent of U.K. construction workers come from overseas, most from EU nations.

“The government must clarify what will happen to the EU construction workers in the U.K., as they are currently filling the gap left by our skills crisis,” Richard Beresford, chief executive of the National Federation of Builders, told Global Construction Review. —Kelsey O‘Connor

SEPTEMBER 2016 PM NETWORK
PM NETWORK SEPTEMBER 2016 WWW.PMI.ORG

Advertisement

Advertisement

Related Content

  • Project Management Journal

    Crises and Coping Strategies in Megaprojects member content locked

    By Iftikhar, Rehab | Müller, Ralf | Ahola, Tuomas This study focuses on crises in megaprojects and on the strategies used to cope with them

  • A Roadmap to PMO Excellence member content open

    By Farid, Sam In the world of the PMO, strategic thinking is not enough—agility and adaptability are crucial for overall survival and sustainable growth.

  • PM Network

    China Roars Back member content open

    China's rebound from a pandemic-induced recession is real—and it's accelerating a burst of project activity.

  • PM Network

    New Urban Utopia member content open

    By Thomas, Jennifer, As the pandemic gripped the globe, the hallmarks of urban living flipped from pro to con. But cities will survive.

  • PM Network

    China responde con un rugido member content open

    El repunte de China de una recesión inducida por una pandemia es real y está acelerando una explosión de actividad de proyectos.

Advertisement