The Government’s attempts to revive the economy through massive investment in infrastructure have so far failed to help civil engineering companies, according to a new survey.
The Civil Engineering Contractors Association’s ‘Workload trends’ survey for January shows workload and orders in the industry at their lowest ebb since the survey’s inception in 1993.
More than 50% of firms reported falling workloads in quarter four of 2008, compared with the same period 12 months’ earlier, and 59% reported reduced order books compared across the same period – both figures representing record lows.
Particularly hard-hit sectors included preliminary works, where there was a balance of -87% between those firms reporting rising workload and those seeing falls, and local roads where the balance was -39%.
Unsurprisingly, the survey also showed that these market conditions were causing contractors to shed jobs, with the majority of firms reporting reductions in employment of skilled operatives, unskilled operatives and staff.
The balance between the number of firms taking on employees and those laying them off was -41% for skilled operatives, -51% for unskilled operatives and -18%for staff.
While chancellor Alistair Darling’s pre-Budget report targeted £700M of transport infrastructure spending that could be brought forward in the next 12 months, respondents anticipated falls in expected workload (-32%) and orders for new work (-35%) during the period.
CECA national director, Rosemary Beales, said: ‘Investment is not translating into work quickly enough, and the net result will be a reduction in the size of the construction industry, unless we get more work on the ground in 2009. ‘With confidence so low, it is easy to see why contractors might be forced to cut their training budgets or reduce apprenticeships.’
Register now for full access
Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.
Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors.
Use the link below to register your details for full, free access.
Already a registered? Login
