Continuing consternation over construction contraction
Featured in09 August 2012 - 15:00
Second-quarter survey shows another sharp fall across all parts of the construction industry
THE latest Construction Trade Survey published by the Construction Products Association shows that during the second quarter of 2012, construction suffered another sharp fall across all parts of the industry, including current workloads, new orders and tender prices.
According to the survey’s findings, as public sector investment continued to decline, in line with the Government’s budget deficit reduction objective, there was no sign of any private sector recovery to offset these cuts, leaving the sector with very little optimism for recovery in the near future.
Commenting on the survey, Noble Francis (pictured), economics director at the Construction Products Association, said: ‘The position for construction in the UK is now looking very bleak indeed, as this is the fourth such fall in the past five quarters.
‘This survey brings together the position from all parts of the construction supply chain and the fact that these findings are reflected throughout the industry should send a stark message to the Government that the current situation is really beginning to hurt.’
He added: ‘The Government has rightly recognized that construction is a key driver for economic recovery. Therefore, government emphasis must be focused on immediate construction work throughout the country, much of which has already been identified. But this will require actual investment to replace the rhetoric that has, of late, been all prevalent.’
Julia Evans, chief executive of the National Federation of Builders, commented: ‘The country is basking in the feel-good factor of the Olympics, which aims to inspire a generation. However, with higher costs, rising numbers of insolvencies, falling output, lower demand and rapidly depleting skills the construction industry is in danger of losing an entire generation of talent.
‘While investment in infrastructure may deliver results in the medium-term, the Government must ensure that its latest Funding for Lending scheme provides the near-term boost that will fuel growth,’ she said.