Real estate has been flagged as one of the UK’s least resilient industries due to a lack of investment in innovation.
A report from GHD, a professional services company, ranked 11 sectors for their resilience to “future shock and disruption” – with water the most resilient and retail the least.
The company based its index on independent research and a survey of more than 2,000 consumers and hundreds of business executives. It analysed companies’ understanding of customers, sustainability of business models, optimisation of assets, and investment in technology.
Real estate landed at ninth – with first being the most resilient. GHD said a lack of environmental commitments and regulation were two of the biggest risks to the industry, and that real estate posted the lowest ranking of all sectors in terms of the mean percentage of budget dedicated to “digital transformation” and the second lowest for adapting emerging technologies.
More promisingly, however, the sector posted one of the best rankings in terms of investability and profitability, second only to financial services.
Across all sectors, almost two-thirds of business leaders questioned said their industry adapted quickly to the challenges of Covid-19 during the past two years, as well as to changing customer demands. Now, most see economic uncertainty as the most significant disruptive factor facing their business in the next decade, followed by shifting demands and the ongoing impact of the pandemic.
Jonathan Edwards, GHD’s EMEA market development leader, said: “Never before has there been such an opportunity for industries to rethink every facet of their being. If it’s not quite a blank slate, it’s the closest thing we’ve had – and will have – for some time to come. UK industry needs to take that step forward to create greater balance of connectivity, resilience, productivity and investability to ensure a strong future for the British economy.”
GHD’s full ranking is as follows:
- Water (most resilient to future disruption)
- Information and communication
- Energy
- Highways
- Manufacturing
- Rail
- Chemical and pharmaceuticals
- Financial services
- Real estate
- Construction
- Retail (least resilient)
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