Contact Us
UK Contractors Group
Centre Point
103 New Oxford Street
London
WC1A 1DU
Every £1 spent on construction leads to an increase in GDP of £2.84, as the spending not only creates construction output worth £1, but also stimulates growth elsewhere in the economy worth £1.84.
In some areas, such as building schools, the economic benefits of construction are even more pronounced. LEK estimates that every £1 spent in this area leads to a total economic benefit of between £3.87 and £5.04, partly because of the direct benefit to the economy, but also because of improved education services that lead to a long-term benefit via a higher-skilled workforce.
Other key findings of the report include:
The construction industry is a driver of growth in other sectors due to its heavy reliance on an extended and varied supply chain.
Construction relies little on imports, so investment is more likely to generate additional economic activity within the UK.
Construction is not only immediate economic production. It is also investment rather than consumption, which provides significant long-term economic and social benefits to the country.
