Workloads on rise for small and medium construction firms

The Federation of Master Builders' (FMB) survey for the third quarter of 2003 has found clear evidence of a continued increase in both the workloads of the UK's small to medium-sized building firms and the numbers of people they employ.

This positive State of Trade survey, the 17th in succession, is bolstered by expectations of growth in both workload and employment in the fourth quarter.

However, the survey also highlights contrasting fortunes between public and private sector work. While the private sector remains the driving force behind the continued growth, Q3 returns for the public sector were, on the whole, less buoyant.

Ian Davis FMB director general said: "Healthy levels of growth and positive future expectations have been reported throughout the UK. We have, however, seen a marked difference this quarter between the public and private sectors. Up to now, low interest rates have driven private new build and domestic RMI investment, but the public sector by comparison appears sluggish.

"We will watch closely to see if this trend continues should interest rates rise."

The survey show 41% of all builders reported higher workloads than in the second quarter, a rise of 3%. The workloads of a further 42% remained steady during July, August and September.

In terms of employment trends, 31% reported an increase in their workforce in the third quarter - the strongest figure for more than a year - with just 9% seeing a reduction. In Q3, private sector work continued to drive growth while public sector work faltered.

Looking ahead to the final quarter of 2003 and beyond, there is a strong expectation that the market will remain buoyant as 38% predict an increase in work levels and 50% expect to maintain current levels - a more positive response than for the same period in 2002.