Challenges Faced by the UK Construction Industry Today Essay

Challenges Faced by the UK Construction Industry Today - Essay Example From the report it is clear that buildings in UK have been accounting for a substantial amount of energy compared to the total electricity consumption, and the entire emission of the carbon dioxide from various building. This has developed challenge replacing or renovating buildings in order to reduce the environmental impacts in a way that neutralizes the carbon emissions, thereby achieving respectable financial returns on investment. There are efforts for reducing consumption of fossil fuels in buildings in order to achieve the objective of neutrality, and this will be achieved through seeking new approaches in designing and renovating buildings.This discussion highlights that  the other challenge relates to the pressure exerted on the construction industry by inflation, whereby pressure has been building over the emerging markets and other mature economies. There is a substantial domestic demand experienced in the construction industry, which is calling for expansionary monetary policy, and increase in cost of commodities. This results to an inflation risk prevailing in the year, though the central bank has commenced to increase the rates in order to prevent asset bubbles. Therefore, a likelihood of remaining as a target in UK because of pressure exerted on the commodities used is in the construction industry while an increase in tax has resulted to an increase in the wages due to expectation of further increase in inflation. (Langdon, 2011, 3). Nevertheless, there are policies that have been undertaken in the Back of England concerning the quantitative reduction of interest rates during the year leading to implications for inflation, which targets integrity (Jones, 2011, 1). In this case, the risk associated with inflation has been depicted three key factors such as potentiality in the rise of food inflation, persistent rise in prices of asset and a substantial increase in the global commodity prices. Shrinking workforce The construction industry in UK has faced a loss in the vital knowledge associated to the inability to replace specific skills, which have made a significant contribution to eh industry. On the other hand, the utility industry has achieved an age of utility workers since numerous of the workers who are experience are about to retire (Hughes, 2011, 1). Moreover, there is an aging workforce as a significant concern in the construction industry, and this is contributing substantially to the shrinkage of the workforce. There are expectations of an increase of average annual rate in construction industry leading to subsequent raise in rate of employment opportunities. However, the deteriorated workforce contributes to a problem related to utilities of the construction industry, whereby the utilities that are projected can lose stability (Lynagh, 2010, 1).