Brexit – What does it mean to the construction industry?

• 20 Jun 2016|
• Purplex News|
• Posted by Martyn East

This Thursday sees the EU Referendum and the culmination of months of campaigns from both sides of the argument.

Many voters will base their decision on the impact that leaving or staying in the EU will have on the sector in which they work.

With this in mind, Purplex take a look at the main opinions regarding what Brexit would mean for the construction industry.

Arguments to leave the EU

Some (including Lord Bamford, the Chairman of JCB), argue that a Brexit would not necessarily have a negative impact on trade. He argues that open trade networks are in everyone’s interest, and this undermines arguments that leaving the EU would make trade more difficult.

In terms of the construction industry, it could therefore be suggested that businesses won’t be negatively impacted, as upon leaving, certain EU rules would have to be agreed regardless, which could act as a safety net for open trade and labour flows.

Arguments for remaining as EU members

Unsurprisingly, much of the construction industry’s success is based on access to labour and flexible working hours, which also come hand in hand with EU membership.

Arguably, access to labour from European workers (both skilled and non-skilled roles) would decline if we were to leave the EU, which would also see a resultant drop in efficiency and profitability.

Equally important, if the UK were to leave the EU, there would be an increase in uncertainty for investors. In terms of the construction industry, this could have a negative impact on finances and overall sector growth.

All will become clearer at the end of the week

Currently, the majority of construction workers are backing the UK remaining as EU members. Simultaneously, however, overall polls suggest that the votes are currently neck and neck.

It’s hard to know the effect of Remain or Brexit campaigns taking victory – only hindsight can tell us that. It is up to each individual to make their own mind up after carefully weighing both sides of the argument. Only after Thursday will we start seeing the effect of the referendum on the construction industry.

About the Author – Martyn East

I’m an SEO Executive at Purplex. I help construction, building products and home improvement brands improve organic visibility with technical audits, content planning and on-page fixes that support lead generation. I also write about market events such as the Brexit vote and what they can mean for search demand and buyer behaviour in the sector.

Connect with me on LinkedIn or read more articles: Martyn East.

 

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