Some good news for the UK construction industry thanks to the latest Construction Trade Survey, published this week, shows that conditions in Q2 improved across all sectors of the construction industry and throughout the supply chain.
It wasn’t just the big players seeing good results from Q2 with many SME’s reporting the first rise in work activity for over 5 years. Private housing continued being one of the key contributors to increasing workloads as well as ‘catch up’ which was postponed or put off due to poor weather conditions in Q1.
Industry prospects are also showing signs of improvement, with manufacturers, specialists, civil engineers, and SME contractors all reporting more orders for future work.
Key survey findings include:
- 72% of building contractors reported an increase in building work on an annual basis*, compared to flat output in Q1
- Building activity increased across all sectors with improved conditions with housing the most improved
- Lightside product sales were broadly unchanged versus Q1*, but 14% of heavyside companies saw sales increase on a quarterly basis in Q2*
- SMEs reported the first rise in annual output since 2007 Q4 and 5% of firms reported a rise in enquiries*
- According to 11% of large and medium-sized contractors, overall new work orders fell on an annual basis*
- Tender prices fell according to 26% of specialist contractors*, and 31% of companies indicated that margins declined
- Cost pressures increased and 58% of contractors*, indicated that costs were higher on a quarterly basis*.
Julia Evans, Chief Executive of the National Federation of Builders, added: “The return of confidence and the fruits of some government schemes are beginning to show measurable results. However, we must not take our eye off the ball as a sustained recovery needs a continuing, sustainable level of investment. While, as an industry, we do not expect to return to pre-2008 levels of activity, it is important to ensure that investment continues – particularly the investment that is dependent on future spending cuts.”
Recipro sourced this article from Construction Line.