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22/08/2008

Civil Contractors Report Gloomy Outlook

Civil Engineering Contractors Association's (CECA) quarterly Workload Trends Survey has revealed signs of a significant slow down among its members.

For smaller contractors, the latest figures show a continuing downward trend in the negative results first highlighted in the previous quarter, confirming the impact of the sharp fall off in preliminary works for new housing developments in the early part of 2008.

The overall total workload balance for Great Britain was -18%, down sharply from +38% in July 2007. Scotland is the only region in the survey to report a positive balance at +17%, reflecting the robust programme of public works currently underway. By contrast, England and Wales are more gloomy, respectively returning figures -22% and -32% for total workload, with England showing the heaviest downturn from +45% in July last year.

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Although smaller contractors are continuing to suffer, firms employing between 300 and 599 operatives showed the sharpest drop off in workload, falling from +56% in April 2008 to -27% in July 2008, and down significantly from the balance of +28% recorded in July 2007.

Commenting, Rosemary Beales, Director of CECA National, said: "Civil engineering is showing signs of a deceleration in workload, in line with the wider industry picture.

"Smaller contractors, particularly those engaged in preliminary works for new housing and other developments, have continued to struggle and it remains a deeply worrying trend. Of fresh and equal concern is the drop in workload for the larger contractors reflected in the difference between the July survey and the previous two quarters."

(CD/JM)

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