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Trends surveys upbeat
00:00 18 Aug 1999
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More than a third of all contractors reported an upturn in
enquiries during the second quarter of 1999, according to the
latest Construction Confederation trends survey published this
week.
Only 14 per cent of companies reported a drop in enquiries, leaving a net balance of 24 per cent. Clive Benfield, CC chairman, said: "The results are encouraging. The industry is expanding."
Expected output over the next 12 months looks healthy: 57 per cent of firms predict an increase with only 11 per cent heralding a downturn. However the regional figures show a wide range in expectations, the greatest optimism coming from London, Midlands and South-western regions.
Some 51 per cent of building companies say they are at full or near-full capacity (down from 59 per cent), while in civil engineering the figure has climbed from 29 to 31 per cent.
Tender margins are still reported as thin. Relative to the previous quarter, 12 per cent of building firms say margins are higher while 14 per cent report a downturn. In civil engineering, the 6 per cent reporting an improvement are overwhelmed by the 19 per cent that report margins on the slide.
The labour market has tightened since the last survey. Shortages are greatest for bricklayers (73 per cent of firms experienced difficulty in securing operatives), plasterers (55 per cent), skilled civil engineering operatives (51 per cent) and carpenters/joiners (49 per cent).
l In Scotland no building firm is operating at below 50 per cent capacity: four-fifths are running at 50-89 per cent capacity, with the remaining fifth being closer to flat-out, according to the Scottish Building Employers' Federation's workload survey.
In the civil engineering sector, 31 per cent of Scottish companies are operating between 90 per cent and full capacity. However 71 per cent of firms anticipated no change in tender prices over the next three months. Half of Scottish companies anticipated a rise in workload in the next 12 months, while 37 per cent looked to demand staying the same. The two booming sectors were public housing and private housing.
Only 14 per cent of companies reported a drop in enquiries, leaving a net balance of 24 per cent. Clive Benfield, CC chairman, said: "The results are encouraging. The industry is expanding."
Expected output over the next 12 months looks healthy: 57 per cent of firms predict an increase with only 11 per cent heralding a downturn. However the regional figures show a wide range in expectations, the greatest optimism coming from London, Midlands and South-western regions.
Some 51 per cent of building companies say they are at full or near-full capacity (down from 59 per cent), while in civil engineering the figure has climbed from 29 to 31 per cent.
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Tender margins are still reported as thin. Relative to the previous quarter, 12 per cent of building firms say margins are higher while 14 per cent report a downturn. In civil engineering, the 6 per cent reporting an improvement are overwhelmed by the 19 per cent that report margins on the slide.
The labour market has tightened since the last survey. Shortages are greatest for bricklayers (73 per cent of firms experienced difficulty in securing operatives), plasterers (55 per cent), skilled civil engineering operatives (51 per cent) and carpenters/joiners (49 per cent).
l In Scotland no building firm is operating at below 50 per cent capacity: four-fifths are running at 50-89 per cent capacity, with the remaining fifth being closer to flat-out, according to the Scottish Building Employers' Federation's workload survey.
In the civil engineering sector, 31 per cent of Scottish companies are operating between 90 per cent and full capacity. However 71 per cent of firms anticipated no change in tender prices over the next three months. Half of Scottish companies anticipated a rise in workload in the next 12 months, while 37 per cent looked to demand staying the same. The two booming sectors were public housing and private housing.
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