Accreditations
Cutbacks to hit hard across construction supply chain in 2012
17 February 2012
Public sector cutbacks are set to have an impact across all aspects of the construction supply chain, from large building firms through to sole traders.
Unfortunately, the latest Construction Trade Survey has done little to reassure small businesses and other operators about the state of the industry.
Output is falling among building contractors, while enquiries to small firms were below average, for the fourth quarter of 2011.
However, civil engineering workloads were in positive territory for the first time in three years, the survey revealed.
Commenting on the findings, Construction Products Association economics director Noble Francis explained: "Cuts to public sector capital budgets had a tangible impact on activity across the construction supply chain, exacerbated by economic uncertainty."
He also noted that sectors with previously positive workloads have seen a shift towards negative figures, which does not bode well for contractors' prospects in 2012.
Many construction industry leaders are hopeful that improvements to apprenticeship opportunities across the sector will help to boost the long-term outlook for operators, by filling the emerging skills gap.
Filed under: construction industry