Tourism could save downturn in construction industry post Brexit explains M&E Contractor – Synecore
Estimated reading time 3 minutes
The topic of what Brexit means for the construction industry has been broadly covered in the trade media and national press. The opinions and predictions have often differed depending on the sector, so what does it mean for construction in the hospitality and leisure trade?
As a leading M&E Contractor for some major players within the Hospitality industry, Synecore - along with fellow SME’s in the UK - held tight to see how the Brexit vote would impact on the nature of their business. Five months on, Synecore has noticed a trend in construction for the hospitality industry that contradicts some of the negative stigma associated to the Brexit vote.
Paul Thomas, Synecore’s Managing Director explains, “Since the Brexit vote in June we have noticed an incline in construction for the hospitality industry. The weakened pound appears to be working in the favour of hoteliers and restauranteurs, particularly in London. The reason being tourists!
“The exchange rates for tourists mean travel to the UK and in particular, London is far cheaper than before to overseas travelers. As a result, we’ve seen a rise in electrical contracts and air conditioning installations for refurbishment projects in hotels and restaurants, especially within the capital.
According to an article in The Guardian, 3.8 million people visited Britain in July alone, the highest month ever for British tourism. While on British soil, these visitors spent £2.5bn, that’s 4% more than last year.
It is not just tourists from overseas looking to holiday in the UK. British holiday makers are set to stay on home turf until the economy has settled. The London tourism trade is therefore expected to increase significantly over the next few years and as a result, construction in the sector will continue to grow.
“Business is certainly booming for hotels in major tourist areas, but there is still a general air of caution within the hospitality sector when it comes to development,” explains Thomas. “The uncertainty of the economy has caused some projects that we were scheduled to complete in 2017 postponed until 2018.
“So far, Brexit has also impacted on materials costs. While we currently find ourselves absorbing these changes, this cannot be maintained. We will always do our best to remain competitive, but there is no doubt costs will increase and the uncertainty in the wake of Brexit is affecting the construction Industry.
“With the surprising growth of certain sectors we could potentially see an increase in construction over the next two years, but only time will tell!” concludes Thomas.
About Synecore
Synecore provides mechanical, electrical, air conditioning and refrigeration design, installation and maintenance services for the commercial sector. Over the years, the company has gone from strength to strength, proving an essential partner in the national roll out programmes for hospitality, retail and leisure clients across London, the South East and the wider UK.
