8,400 civils jobs to be axed by Christmas

Small and medium size civil engineering contractors expect to axe more than 8,000 workers as a result of the downturn.

A survey by the Civil Engineering Contractors Association shows that up to 17% of the civils workforce employed by smaller contractors face a bleak Christmas.

The survey of firms employing up to 300 workers carried out in October found that an estimated 8,400 workers will be laid off because of falling workloads and difficulties securing bank funding.

CECA has launched a 10-point emergency action plan to help struggling contractors, but warned that any action announced by Chancellor Alistair Darling in the Pre-Budget report on Monday would come too late to head off the expected job losses.

Many of the firms cutting jobs are expected to play a crucial role in the 'on-the-ground' delivery of major infrastructure projects such as the £16bn Crossrail project and the Government’s plans for a new wave of nuclear power stations.

Rosemary Beales, CECA Director, said “If the SME sector is allowed to contract, through redundancies and businesses failing, then construction will lose capacity and the skills and resources lost will have to be replaced - at great expense - when demand for infrastructure development returns.

She added: “Steady investment now could maintain civil engineering SMEs through difficult times and offset a far greater outlay when the country needs to call on their resources in the future.”