The civil engineering sector showed few signs of recovery according to a survey of work trends undertaken by the Civil Engineering Contracting Association (CECA).
The survey results showed that 43% of firms had seen their workloads fall in the first quarter of 2011 when compared with the same period the previous year. 16% of firms that responded said they had witnessed an increase in workload compared with the previous year.
The survey also highlighted concerns regarding the squeeze between inflation and tender prices. 76% of respondents noted that they had witnessed rising costs, further to this 42% reported that costs were rising faster than a year ago. The majority of respondents also reported that tender prices have continued to fall causing concerns that the economic situation is currently unsustainable for the construction industry.
Alasdair Resiner, director of external relations at CECA commented: “For an industry still seeking the light at the end of a very dark tunnel, there are few grounds for optimism in this survey.
“While signs of growth in rail and power are certainly welcome, the fact that the overwhelming balance of respondents reported continuing falls in workload is a real cause for concern.
“CECA is hopeful that the policies now being implemented by Infrastructure UK and others will support a return to growth in the civil engineering sector. However the results of this survey demonstrate that, for an industry being squeezed between rising costs and falling tender prices, the government has no time to lose in taking important measures to streamline procurement and encourage private sector investment.”
Recipro sourced this article from Construction Now