M&E firms have experienced a rise in order, enquiry and turnover levels during the past six months, according to research by the Building & Engineering Services Association (B&ES).

The Associations latest state of trade survey, which covers the period from January to June this year, reveals a positive 'net optimism measure' of 45%, an increase from 29% six months ago.

Firms in all regions, of every size and specialism, said they are feeling positive about their future prospects.

A total of 53% of survey respondents reported a growth in order levels, compared with 47% in the second half of 2014.

Overall, 41% enjoyed an increase in enquiries and 40% an increase in turnover.

The research also showed an improvement in tender prices. For the first time since the survey was introduced in 2012, more members reported a rise than had experienced a decline.

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Labour and material costs were both seen to increase, while 36% of firms claimed to employ more direct labour than six months ago.

In total, 40% expected workforce levels to increase further during the remainder of 2015. There was also a rise in the number of members taking on apprentices and making use of agency personnel.

However, a range of concerns continue to temper B&ES members' optimism. These include skills shortages, zero and ultra-low margins, over-long tender lists and the prevalence of late payment.

B&ES Chief Executive Paul McLaughlin said the research confirmed the anecdotal evidence that the industry was recovering.

"I am also pleased that firms are responding to the challenge posed by skills and labour shortages by stepping up their training activity so as to take full advantage of the commercial opportunities that are available to them," he said. "The optimism which is clearly spreading throughout the membership augurs well for our sector as a whole."

Overall, 17% of B&ES members took part in the survey, an increase of 15% from last time.

A full report of the findings can be found on the B&ES website here.

(LM)