While the latest state of trade survey by the Civil Engineering Contractors Association (CECA) reveals most indicators moving in a positive direction, there are fears this could all be dashed without more public spending
CECA’s Workload Trends 2013 Q4 report found that although member firms’ workloads are increasing, the increase in activity was not as strong as it had been in the previous quarter.
The strongest growth was in rail and preliminary works for housing; activity in local roads was down to -6% on balance.
Contractors remain optimistic overall, with a balance of +58% expecting workloads to grow over the coming year. This comes despite a reduction in the rate of growth of new orders, down to a balance of +3% from +30%.
Employees remain in demand as prospects of new work boost employment across the sector – 50% more firms took on staff than cut headcount in the last year.
Tender prices are slowly rising, up for 36% of firms, on balance, compared with the same point last year.
CECA director of external affairs Alasdair Reisner said: “It is good news that the infrastructure sector is growing, but today’s report indicates that growth in the sector remains fragile.
“Last year CECA’s report, Securing our economy: The case for infrastructure, showed that the country was losing £78bn each year due to sub-standard infrastructure. We will only be able to close this gap by sustaining recent growth in investment.
“It is crucial that government and industry work together to ensure we maintain momentum in delivering projects, if Britain is to achieve the shared goal of all political parties: an infrastructure-led recovery.”
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