A new trade survey has revealed uncertainty in the construction sector ahead of the EU referendum, with a mixed year ahead forecast…
The latest Construction Trade Survey has revealed a mixed outlook for the year ahead, it has emerged.
The survey, carried out by the Construction Product Association (CPA), revealed an increase in construction activity across the supply chain in quarter one. The rise represented the twelfth consecutive increase reported by construction product manufacturers.
However, despite this rise the survey revealed only 19 per cent of main building contractors saw output rise during the first quarter of 2016 compared with a year ago.
Senior economist at the CPA Rebecca Larkin said: “After a slowdown at the end of last year, firms throughout the construction industry experienced a stronger opening quarter in 2016.
“In spite of this, the clear theme for Q2 is uncertainty, with main contractors reporting lower orders in all sectors as projects are paused or postponed ahead of the EU referendum in June.
“Beyond that, firms continued to indicate that a shortage of skilled workers is the largest threat to construction activity over the rest of the year.
“Main contractors reported difficulties in recruiting bricklayers, carpenters and plasterers in Q1, whilst low availability of labour was also reflected in upward pressure on wage bills among product manufacturers and civil engineers.”
Chief executive of Build UK Suzannah Nichol said: “There continue to be mixed messages in terms of growth; however, industry intelligence shows increasing levels of activity over the last quarter.
2Employers are experiencing both rising material and labour costs as they head towards maximum capacity and this continues to highlight difficulties in recruiting appropriate skills at all levels.
“Build UK is leading the way on the war for talent with its members opening their projects up to the public during Open Doors week in June to attract the brightest talent to projects at a both local and national level.”
The report also found that 13 per cent of SME contractors saw an increase in workloads in Q1 compared to three months earlier. A total of 38 per cent of specialist contractors reported a rise in output during Q1.
Additionally, skills difficulties remain an issue with 50 per cent of main contractors reporting problems recruiting carpenters during Q1, 40 per cent had issues with bricklayers, and 36 per cent with plasterers.
Richard Beresford, chief executive of the National Federation of Builders, said: “Uncertainty over the outcome of the EU referendum and over the nation’s defining issue – housing – is reflected in slowing industry performance.
“While homes will continue to be built, as long as there is uncertainty over government policy, we will not be able to provide anywhere near the number of homes people need.”
