{"id":64372,"date":"2019-10-08T07:53:39","date_gmt":"2019-10-08T06:53:39","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=64372"},"modified":"2019-10-08T07:53:39","modified_gmt":"2019-10-08T06:53:39","slug":"uk-contractors-productivity","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/uk-contractors-productivity\/64372\/","title":{"rendered":"Productivity is UK construction industry\u2019s Achilles heel, says report"},"content":{"rendered":"

Confidence amongst UK contractors has reached historic lows according to Turner & Townsend<\/a>, as construction\u2019s dysfunctional relationship with productivity limits the sector\u2019s future growth<\/h2>\n

The number of new orders reflects levels normally seen only in \u2018severe recessions\u2019. While, sentiment in the construction industry saw its third successive quarterly fall in Q2 2019, according to the most recent UK Market Intelligence Report<\/a> from Turner & Townsend.<\/p>\n

The report points to falling rates of new orders<\/a>, highlighted by the Office of National Statistics (ONS), as key drivers behind the crisis in confidence. Figures for Q1 2019 show a decline of 12.8% on the same period in the previous year.<\/p>\n

At the same time, Turner & Townsend\u2019s analysis of material cost inflation at 3.4% highlights continued pressure on UK contractors\u2019 margins.<\/p>\n

Against the backdrop of higher costs and falling order numbers, UK contractors regard the tendering environment<\/a> as weak. 54.8% of respondents to Turner & Townsend\u2019s survey described conditions as lukewarm, while only 10.8% of respondents expected the market to get warmer over the coming 12 months.<\/p>\n

Respondents to the survey identified all-too-familiar bugbears \u2013 political uncertainty around Brexit<\/a>, a lack of confidence in the market to invest in new projects, and skilled labour shortages \u2013 as being the greatest challenges facing the sector.<\/p>\n

However, analysis shows that poor productivity is being largely ignored, with it ranking third from bottom on the list of key challenges.<\/p>\n

Productivity in construction, when measured by output per job, has only increased by 14.8% in almost three decades. In that same period, other industrial sectors have outpaced productivity gains in the construction industry.<\/p>\n

Paul Connolly, UK managing director of cost management at Turner & Townsend, said: \u201cConstruction\u2019s dysfunctional relationship with productivity is being largely ignored. This is perhaps understandable as contractors contend with more pressing priorities. But if this is a burning platform moment for the industry, the productivity crisis is an engine room fire.<\/p>\n

\u201cNo one innovation will solve the construction industry\u2019s productivity problems. When used intensively and intelligently though, modern methods such as offsite construction<\/a> can deliver greater efficiency, quality, and confidence.<\/p>\n

\u201cProductivity is the Achilles heel of the construction industry. Left unchecked this weak spot will only get larger, severely limiting the sector\u2019s future growth potential. This will leave a damaging legacy that will stifle progress long after the current cyclical issues fade.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

Confidence amongst UK contractors has reached historic lows according to Turner & Townsend, as construction\u2019s dysfunctional relationship with productivity limits the sector\u2019s future 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