Figures released by the CPA (Construction Products Association) show that once again the British construction industry is in dire straits.
The survey, published today, shows that construction suffered another sharp fall in current workloads, new orders and tender prices, proving that the last quarter was not a healthy one for the ailing industry. The lack of public sector investment in the construction industry is being cited as a possible reason for the continued slump.
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The key findings of the survey include;
- 30 per cent more contractors reported rising costs than those who said costs were falling
- Profit margins were also worsening, with a balance of 49 per cent reporting reductions in Q2, compared to around a third in Q1
- 45 per cent more heavy side firms said sales had declined in the last quarter, although a balance of 20 per cent of light side firms reported rising sales.
- Employment remained broadly static, although heavy side manufacturers saw a slight decrease while light side firms marginally increased their headcounts.
The only positive note to take from the recent construction slump is the slight rise in fortunes of specialist contractors.
Speaking about the survey, the Construction Products Association’s economic director Noble Francis said; “the position for construction in the UK is now looking very bleak indeed, as this is the fourth such fall in the past five quarters. This survey brings together the position from all parts of the construction supply chain and the fact that these findings are reflected throughout the industry should send a stark message to the government that the current situation is really beginning to hurt.”