{"id":537001,"date":"2026-01-28T10:16:55","date_gmt":"2026-01-28T10:16:55","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=537001"},"modified":"2026-01-28T10:16:55","modified_gmt":"2026-01-28T10:16:55","slug":"urgent-stimulus-measures-essential-to-help-ailing-industry-warns-clc","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/sections\/data\/urgent-stimulus-measures-essential-to-help-ailing-industry-warns-clc-28-01-2026\/","title":{"rendered":"Urgent stimulus measures \u2018essential\u2019 to help ailing industry, warns CLC"},"content":{"rendered":"<p class=\"p1\">The Construction Leadership Council (CLC) has said that \u201ctargeted stimulus measures\u201d from the government are required urgently, as weak demand and rising costs continue to dash hopes of an industry recovery.<\/p>\n<p class=\"p1\">An update from the body\u2019s materials supply chain group said that action was needed due to \u201cpersistent difficulties\u201d and \u201cstubbornly low\u201d consumer confidence.<\/p>\n<p class=\"p1\">It comes as construction remains one of the worst-hit industries for administrations,<a href=\"https:\/\/www.constructionnews.co.uk\/financial\/monthly-construction-administrations\/number-of-administrations-hits-150-in-first-half-of-2025-04-07-2025\/#:~:text=Number%20of%20administrations%20hits%20150,based%20Elements%20(Europe)%20Ltd.\"> with 150 firms going under in the first half of 2025<\/a>.<\/p>\n<p class=\"p1\">\u201cThis group believes that targeted stimulus measures are now essential to restore momentum, support job creation, and unlock latent demand for materials and labour,\u201d the CLC said in a statement yesterday (27 January).<\/p>\n<p>The materials supply chain group said \u201csustained recovery\u201d will depend heavily on renewed investment in new homes and residential repair, maintenance and improvements.<\/p>\n<p class=\"p1\">As a key sector, housing is still struggling due to planning capacity issues, regulatory delays and weak investor confidence, the group said.<\/p>\n<p>It warned that the government\u2019s target for 1.5 million new homes in the current parliament remained \u201cfar off-track\u201d.<\/p>\n<p class=\"p1\">Across the industry, the CLC group said the \u201congoing weakness\u201d in demand, rising costs and cashflow pressures had taken their toll on the supply chain, leading to a steady stream of administrations.<\/p>\n<p class=\"p1\">\u201cIncreasingly, the supply side focuses on protecting margins and controlling costs,\u201d the group said.<\/p>\n<p class=\"p1\">Timing is also causing problems for major contractors, the group said, with the significant extension of preconstruction services agreement periods across schemes \u201cespecially worrying\u201d.<\/p>\n<p class=\"p1\">The CLC statement cited official government data showing a 1.3 per cent decline in construction output in November, at the same time the UK economy grew by 0.3 per cent.<\/p>\n<p class=\"p1\">Volumes of concrete orders \u2013<span class=\"Apple-converted-space\">\u00a0<\/span>a good indicator of construction activity \u2013 have slid by around 28 per cent over the past four years, the materials supply chain group said.<\/p>\n<p class=\"p1\">London, which is usually the busiest market, saw a 39 per cent drop in the past two years, it noted.<\/p>\n<p>Earlier this week, the Construction Products Association predicted that industry output <a href=\"https:\/\/www.constructionnews.co.uk\/sections\/data\/construction-growth-downgrade-sparks-insolvency-fears-26-01-2026\/\">will grow by just 1.7 per cent in 2026<\/a> \u2013 a downgrade from a previous forecast of 2.8 per cent growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Construction Leadership Council (CLC) has said that \u201ctargeted stimulus measures\u201d from the government are required urgently, as weak demand and rising costs continue to dash hopes of an industry recovery. An update from the body\u2019s materials supply chain group said that action was needed due to \u201cpersistent difficulties\u201d and \u201cstubbornly low\u201d consumer confidence. It &#8230;<\/p>\n","protected":false},"author":29901,"featured_media":505722,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[78193],"tags":[],"class_list":["post-537001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Urgent stimulus measures \u2018essential\u2019 to help ailing industry, warns CLC | Construction News<\/title>\n<meta name=\"description\" content=\"The Construction Leadership Council (CLC) has said that \u201ctargeted stimulus measures\u201d from the government are required urgently, as weak demand and rising\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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