The scaffolding sector is expected to face several challenges in 2024. The industry is grappling with economic uncertainty, cost volatility, and workforce challenges. The ongoing shortage of skilled labour continues to impact the sector, and increasing labour costs are adding to the industry’s woes. Moreover, high-interest rates and tighter lending standards are also impacting construction activity.
However, there is some good news for the industry. According to Deloitte Insights, the scaffolding industry is expected to grow in 2024, driven by sustainable practices and technology advancements. The industry is expected to be better positioned to accelerate changes and align with the International Energy Agency’s Net Zero Emissions by 2050 Scenario, which requires all new buildings and 20% of existing structures to be zero-carbon-ready by 2030.
Looking ahead to 2024, there could be a boost to construction associated with manufacturing, transportation infrastructure, and clean energy infrastructure, as funds from three key pieces of legislation passed in 2021 and 2022 are expected to flow into the industry.
However, the industry is also facing volatility in material prices. According to BCIS, building costs are forecast to rise by just over 3% in the year to 4Q2024, while tender prices are expected to increase by just over 2% in the same period. Amid slower economic growth and increased inflationary pressures, including the impact of rising material costs and labour shortages on some projects’ viability, sector growth is forecast to moderate during 2023 and 2024.
The scaffolding sector is also facing workforce challenges. The industry is grappling with a shortage of skilled labour, which is impacting the sector’s growth. The shortage of skilled labour is expected to continue in 2024, and increasing labour costs are adding to the industry’s woes.
Moreover, the industry is also facing cost volatility. According to the Construction Products Association, the cost of materials is expected to rise by 5.9% in 2024, which is higher than the expected rate of inflation. The rising cost of construction materials is expected to impact the sector’s growth in the coming years.
Despite these challenges, the scaffolding sector is expected to present several opportunities in 2024. The industry is expected to benefit from funds from key pieces of legislation passed in 2021 and 2022, which could lead to a boost in construction activity. The industry is also expected to benefit from the adoption of sustainable practices and technology advancements. The adoption of sustainable practices is expected to drive demand for green buildings, which could lead to an increase in construction activity. The adoption of technology advancements is expected to improve the efficiency of scaffolding processes, which could lead to a reduction in costs.
The scaffolding sector is expected to face several challenges in 2024, including economic uncertainty, cost volatility, and workforce challenges. However, the industry is expected to grow in 2024, driven by sustainable practices and technology advancements. The industry is also expected to benefit from funds from key pieces of legislation passed in 2021 and 2022. However, the industry is also facing volatility in material prices, which could impact the sector’s growth in the coming years. The shortage of skilled labour is expected to continue in 2024, and increasing labour costs are adding to the industry’s woes. The rising cost of scaffolding materials is also expected to impact the sector’s growth in the coming years.
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