Construction output down in Q4 2011 ONS data shows that construction output fell by 0.5% in Q4 of 2011, with housing the worst performer in the period. However, output was up by 2.8% for 2011 as a whole on 2010. CPA remain concerned at the downward trend and the prospects for the next 18 months, particularly the speed of recovery in the private sector. They predict a 5% fall in output in 2012, followed by a flat 2013 and 3-4% growth in 2014. Government cuts construction costs Government departments have already cut costs by as much as 7% as part of the construction strategy. The policy is to reduce costs by 15-20% by 2014/15. Individual targets have been released for 5 departments - health, schools, justice, highways and environment. Average value of contracts fell by 15% in 2011 Research by Glenigan and CNinsight has found that the average value of contracts for the top 50 contractors during 2011 shrank to £8.7m, a 15% fall from the £10.3m average for 2010 and the lowest level since before the recession in 2008. This reflects the move by larger contractors to chase smaller projects in order to maintain workloads . |
Since 2008, the whole UK construction industry has become extremely unpredictable, largely due to global (and latterly EU) issues. The £100bn sector has seen major shifts and early signs of recovery seem to have been dashed. BUT THERE ARE STILL OPPORTUNITIES OUT THERE FOR ALL!
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