UK Export Finance: How the Government is supporting UK Construction business
In October 2019 UK Export Finance (UKEF), the export credit agency of the UK Government, published an overview on how the government is supporting UK exports, particularly in the construction industry. The publication outlines annual funding contributions and examples of construction organisations that have directly benefited from the support of UK Export Finance. The overview is an essential read for DCI customers, as well as organisations that are looking to grow their business in the private sector construction and infrastructure industry in the future. The highlights from the overview are below.
Highlights of the UK Export Finance Overview
The global construction industry is getting stronger and stronger. The UK construction sector alone contributes more than £8.49 trillion per annum to the world economy, a sum which is forecast to rise to £10.1 trillion by 2022. This figure equates to 7% of overall UK GDP, a considerably larger proportion than other sectors and a driving force of employment. The UK holds a reputation around the world for producing high-quality and highly skilled construction – a statement reflected in the expectation that the UK is set to overtake Germany as the sixth largest construction market by 2030, with a 14.7% share of all global economic output.
Through the UKEF, the UK Government is taking a more direct approach to supporting construction businesses in the UK. In the last financial year, UKEF provided more than £570 million of support to exporters in construction to help the industry achieve its full potential. This huge figure has directly benefited organisations on the ground, contributing to valuable construction projects around the world.
An example of this is the transport infrastructure firm Colas UK. With UKEF funding, Colas UK was able to help support the building of an international airport in the Kabaale region of Uganda, including the construction of a runway, taxiway, cargo terminal and other necessary infrastructure. This loan by UKEF of €270 million remains the largest ever given to an African government to help a project with a lasting positive impact. As well as helping to grow tourism and employment in the Kabaale area of Uganda, construction of the airport also aligns with Colas UK’s wider business goal of expanding their activities in East Africa.
According to the overview, UKEF supports businesses of all sizes in three main ways: they help exporters win contracts, they help organisations fulfil contracts, and, most importantly, they help them get paid. The Government’s ambition to raise exports as a proportion of GDP from 30% to 35% means that the essential role the UKEF play will only grow. Despite political uncertainty, the UK is undergoing a crucial period in construction and now is the time to seize your opportunities within the construction sector.
DCI’s Commercial Projects tool gives businesses the best chance to win contracts through early engagement strategies with buyers. The tool gives access to more than 400,000 construction projects from the early planning stage as well as 10,000 non-planning projects annually. This information is vital to suppliers and all accessible within 24 hours of a contract being published. Experience Commercial Projects for yourself with the DCI free trial.
Alternatively, if you are already a DCI customer then call our Customer Growth Team today on 0845 270 7091.