Staff issues top survey

Retaining and recruiting key staff and increasing pressure on margins are the two main challenges facing construction companies in 2005, according to the latest CJ and Grant Thornton Business Confidence Survey.

Staffing issues are the biggest worry for firms with a turnover of between £200m and £500m. For this size company, key staff means senior management, project managers and quantity surveyors, rather than skilled labour. Unlike previous years, pressure on margins is a bigger worry than the availability of skilled labour.

For small construction businesses, the biggest concerns are squeezed margins and the general economic climate. Even so, 81% of all firms feel they will have difficulty recruiting at least part of their labour force over the next five years.

A greater percentage of respondents, 32% compared with 24% in 2003 and 11% in 2002, believe the economy may decline over the next 12 months, although 50% feel that conditions are likely to remain stable.

CIS, health and safety legislation and red tape are still felt to be a major burden by the industry, while 72% feel the future pension crisis is an increasingly worrying issue.

For highlights of the survey see pages 26 to 29 or go to: www.grant-thornton.co.uk/constructionsurvey for details.