The 2018 Key
Performance Indicators (KPIs) produced by Glenigan provide a valuable
assessment of the industry’s recent performance, its strengths and weaknesses,
and its ability to address the challenging market conditions forecast for the
next few years.
The latest set of
KPIs is based upon projects completed during 2017, a year of heightened
political and economic uncertainty which disrupted construction workloads and
was accompanied by rising material and energy costs and growing concerns over
labour availability.
Many of the projects
covered by the survey were awarded and started on site in earlier years,
requiring contractors to accommodate these additional pressures within
established build programmes and budgets.
The KPIs reveal a
dip in client satisfaction with the industry’s performance, although client
satisfaction remains at historically high levels.
Overall client
satisfaction is still high with 87% of clients rating the finished product as 8
out of 10 or better, but this is slightly down on the record 90% seen in the
previous surveys. Clients’ satisfaction with service and value for money fell
more steeply, potentially reflecting the pressures faced by the industry from
rising costs and reduced labour availability.
Contractors’
satisfaction with the industry’s clients also slipped. A fall in overall
satisfaction has been accompanied by declines in satisfaction about both the
information provided for the project by the client and over payment provision.
Looking ahead, firms
are facing a sustained period of volatile industry workload and structural
change as the UK economy and the construction industry adapt to life outside of
the EU. This is likely to increase the pressure on firms’ margins and intensify
the need for firms and the industry as a whole to raise productivity.
Accordingly, a marked rise in productivity over the last year is encouraging.
Up-skilling the
workforce, containing costs and efficiency improvements, including through the
greater use of offsite manufacture and integrated working, will be priorities
if the industry is to secure improved margins and greater productivity over the
coming years.
The Construction Industry Key Performance Indicators provide firms with benchmarks covering the
industry’s economic performance, workforce and environmental performance. The
KPIs enable firms to appraise their own performance against their peers and
help identify where they can secure future improvements that will help enhance
their competitive position and win work.
