Building back better from Covid-19: Views from the global construction industry

On Wednesday (3 March), Britain heard details of HM Treasury’s 2021 Budget and the measures it contains to support the nation’s recovery from the Covid-19 pandemic. Over the past year, significant emphasis has been placed on the central role of the construction industry in helping the UK to ‘build back better’.

This idea is not unique, and nations around the world are using Covid-19 as an opportunity to reassess their industries and governing priorities. Many are now looking to the built environment to stimulate their economy, create jobs and work towards a sustainable future.  

We take a look at some of the plans of governments around the world to support the construction industry and build back from the pandemic.

China

Currently, the world’s largest construction market, China’s construction industry is forecast to grow despite the impact of the Covid-19 pandemic, with revenue expected to increase to US$1.1 trillion by 2021. The Chinese Government has launched a ‘New Infrastructure’ plan to mitigate the economic effects of Covid-19 and boost sustainable growth. The plan will focus on the construction of telecommunications, technology and transportation infrastructure, and upgrades in public housing. This includes US$1.55bn to expand the country’s electric charging network by 50%, to stimulate demand for electric vehicles.

United States (US)

In the US, the recently-elected Biden administration has announced its ‘Build Back Better’ jobs and economic recovery plan which includes measures to “mobilise American ingenuity to build a modern infrastructure and an equitable, clean energy future.” The plan is designed to create skilled, green jobs and includes US$2 trillion accelerated investment in rebuilding infrastructure, constructing sustainable homes, upgrading existing buildings, and driving innovation in sustainable construction materials.

United Arab Emirates (UAE)

The UAE Government has announced a US$70bn economic stimulus package to support small businesses and reduce overall business costs. A further US$7.2bn package includes measures to accelerate major infrastructure projects.

Abu Dhabi has announced plans to launch US$2.72bn worth of infrastructure projects as part of the Ghadan 21 accelerator programme, which will cover social, municipal, and transportation developments. The Dubai Development Authority has also announced a Planning and Development Stimulus Initiative, which splits the payment of permit fees into installments and delays fee payments.

Australia

In February 2020, Infrastructure Australia released its priority list of 147 strategically significant infrastructure proposals, covering transport, energy, water, telecommunications, and social infrastructure. The Australian government has since built on these priorities, announcing a US$1bn package in July for ‘shovel-ready’ smaller-scale projects to support job creation and allocating AUD$1bn of low-cost finance in the 2020-21 Federal Budget to support the construction of additional housing.

An AUD$680m HomeBuilder Programme has also been announced to stimulate residential construction activity, providing a total of 27,000 grants valued at AUD$25,000 each for eligible owner-occupiers to build a new home or substantially renovate an existing one.

South Africa

In South Africa, an Economic Reconstruction and Recovery Plan was announced at the most recent State of the Nation address, focusing on the massive rollout of infrastructure, local production, job stimulation and creation, and energy generation capacity. An Infrastructure Investment Plan backed by the R100bn Infrastructure Fund has further been heralded as an opportunity to revive the construction industry and create new jobs.

In planning to expand energy generation capacity, the Recovery Plan aligns with the commitment made by Eskom, the South African electrical public utility company, to reach net-zero emissions by 2050. The Green Building Council of South Africa is also leading the industry in developing energy efficient residential estates.

Hong Kong

In Hong Kong, the Government has announced its plans to invest US$127.6bn in infrastructure by 2028/9 to stimulate public and private sector investment in construction projects and combat the industry’s contraction by 9.2% in 2020. In July 2020, the Legislative Council approved a further US$92bn Capital Work Reserve Fund for future public projects, to stimulate the industry and create new jobs.

Find out more about the UK’s plans to build back better in our analysis of the 2021 Budget.