{"id":25666,"date":"2020-03-13T16:12:59","date_gmt":"2020-03-13T16:12:59","guid":{"rendered":"https:\/\/ihbconline.co.uk\/newsachive\/?p=25666"},"modified":"2020-03-13T16:12:59","modified_gmt":"2020-03-13T16:12:59","slug":"every-1-spent-on-uk-construction-creates-2-92-says-cbi","status":"publish","type":"post","link":"https:\/\/newsblogs.ihbc.org.uk\/?p=25666","title":{"rendered":"Every \u00a31 spent on UK construction creates \u00a32.92, says CBI"},"content":{"rendered":"

\"\"Every \u00a31 spent on construction creates \u00a32.92 of value to the UK economy according to a new study by the CBI and Oxford Economics, called Fine Margins<\/em>.<\/h3>\n
image: Open Goverment Licence v3.0<\/em><\/h6>\n

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Construction Manager Magazine<\/em> writes:<\/p>\n

….That\u2019s according to a new study by the CBI and Oxford Economics, called Fine Margins.<\/p>\n

The figure is an 8p increase on the \u00a32.84 multiplier\u00a0identified in a study by L.E.K. Consulting<\/a>\u00a0just over a decade ago.<\/p>\n

With average profit margins of just 2.5%, construction businesses spend twice as much on legal services as other industries and a third of the workforce is less than 15 years from retirement, the CBI report found.<\/p>\n

But tackling those issues would create a financially sustainable construction sector, which can\u00a0invest\u00a0more in training and technology, it added. In turn, if this investment lifts the productivity of the industry by just 2%, it has the potential to add \u00a330bn to the UK economy annually by the end of this decade, the CBI claimed.<\/p>\n

In order to ensure the long-term financial health of the construction industry, the CBI has recommended:<\/p>\n