Essay on The British Building and Construction Industry

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The British Building and Construction Industry UK construction industry provides tenth of UK gross domestic product and employs 1.4 million people. UK designers, civil engineers, contractors, component and product manufactures. UK construction industry is one of the strongest in the world with output ranked in global top ten, with increase of private finances to public sector projects. British consultants and contractors are well positioned to offer skills and experience in building projects. In order for British construction industry to do what they are best capable of doing which is providing and building new houses, demand and supply plays a vital role. There has to be to be enough demand for houses for construction…show more content…
This will increase the work and demand for constructionline and other building and construction industries as incomes are greater and people are now willing to buy bigger and new houses, this will increase long run profits of construction industries. Incomes rise, demand for houses increases D-D1 followed by an increase of quantity Q1-Q2 by construction industries as there is greater demand which increases the price from P1-P2. Income elasticity of demand is great as income rises the demand for houses increase. Level of economic activity/Consumer confidence-Consumer confidence is vital in the housing sector. If expectations of future performance of economy deter ate and people become less optimistic about their own financial circumstances they are tempted to curtail they search for a new home or delay entry to the owner occupied sector. This will see constructionline and other building and construction industries halt their supply and see a loss in profit. Consumer confidence is low, demand falls from d-d1 and supply falls from s-s1. Which reduces quantity from q1-q2 and price remains the same. Equally when economy is enjoying sustained growth and rising prosperity- improved confidence raises the number of home buyers and shifts the balance of home power in the market towards the seller if properties are in short supply. This benefits
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