The latest construction workload forecast makes truly grim reading, with a peak to trough output fall of 23%. This is depressingly deep and if past recessions are anything to go by could see as many as 800,000 jobs haemorrhaged from construction.
The situation has taken a critical turn. House building trade contractors fell foul of the early stages of the credit crunch, now it is the turn of major contractors to feel severe pain from a big public spending crunch.
If there is any consolation it is that economists usually get big falls and rises wrong.
What maybe being missed amid the thick smoke of our burnt out public sector finances, are a few glowing embers from the private sector. Prospects for the nuclear and utility industries are known places to seek refuge, but not the only protective nooks and crannies.
Little mention is made of the way the food industry shrugged off the downturn to hatch expansion plans.
Builder Bowmer & Kirkland is taking a different tack and bank on the worsening economy triggering orders for security and surveillance work.
In the Capital, contractors are checking in on a surge of hotel orders ahead of the Olympics. Also heartening is Land Securities' plan to press ahead with its stalled £100m Park House retail and office project in London's Oxford Street. Is this a sign property giants maybe stirring.
It is all balanced on a knife edge. But there are at least signs that the private sector may offer a few morsels to work-starved contractors.
The situation has taken a critical turn. House building trade contractors fell foul of the early stages of the credit crunch, now it is the turn of major contractors to feel severe pain from a big public spending crunch.
If there is any consolation it is that economists usually get big falls and rises wrong.
What maybe being missed amid the thick smoke of our burnt out public sector finances, are a few glowing embers from the private sector. Prospects for the nuclear and utility industries are known places to seek refuge, but not the only protective nooks and crannies.
Little mention is made of the way the food industry shrugged off the downturn to hatch expansion plans.
Builder Bowmer & Kirkland is taking a different tack and bank on the worsening economy triggering orders for security and surveillance work.
In the Capital, contractors are checking in on a surge of hotel orders ahead of the Olympics. Also heartening is Land Securities' plan to press ahead with its stalled £100m Park House retail and office project in London's Oxford Street. Is this a sign property giants maybe stirring.
It is all balanced on a knife edge. But there are at least signs that the private sector may offer a few morsels to work-starved contractors.
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Comments (1)
Hi
The issues you are talking about here are interesting.
Thank you.
Posted by Amit Cohen | July 20, 2009 1:00 PM
Posted on July 20, 2009 13:00