Contractor survey confirms downturn in industry workload
Nearly a third of firms have seen a fall in their workload during the first six months of 2012, although there are signs that the rate of decline is slowing down, according to a state-of-trade survey carried out among members of the Building & Engineering Services Association (B&ES). The downturn has been most evident in the north east of England, Yorkshire and Scotland, and in the residential sector.
Half of respondents reported that tender prices were lower than they were six months ago and that while labour costs had remained more or less static, there had been a significant increase in the cost of materials.
Direct employment has fallen across the board, and skill shortages do not appear to be of great concern to most respondents — 61% of whom have not taken on an apprentice or trainee in the past year.
In contrast, the findings indicate an expected increase in direct employment levels during the second six months of the year, along with a net increase in investment in training.
Some 70% of respondents indicated that they had some involvement in the installation of renewable technologies during the period. Air-source heat pumps were the most popular technology, followed by solar thermal.
Members of B&ES acknowledged the likely further growth in demand for such technologies over the next few years and the consequent need to provide appropriate training and attract new blood into the industry.
Among the association’s specialists, members of the Service & Facilities Group have coped best during the recession, Members of the Ductwork Group and the Heating & Plumbing Services Group have suffered most deeply.
Members believe that the major factors affecting business growth are late payment, tight margins and insolvency further up the supply chain. The key driver for growth was cited as increased investment by the public sector.
The survey covered the period January to June 2012 and was conducted by independent research organisation Lychgate Projects. It was supported by telephone interviews with representatives of some of the sector’s biggest players. Over 200 B&ES members took part.
A copy of the findings of the survey can be downloaded from the association’s web site.
