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18/05/2009
Downturn Slows But Recovery A Long Way Off
The Civil Engineering Contractors Association (CECA) Workload Trends Survey revealed that the industry downturn slowed in the first quarter of 2009.
CECA members reported a further deterioration in workloads in April 2009, continuing the downward trend established in July last year. However while deeply negative, the apparent rate of deterioration in workload was less than in January. The position in England was only marginally better while Scotland and Wales showed contrary results - deteriorating sharply in Wales but improving relatively in Scotland.
CECA surveys workload by size of company and the largest have so far fared marginally better than the smaller and medium sized contractors during the current downturn. Results for Q1 2009 show lower workloads across-the-board, with the small and medium sized contractors enjoying a relative reduction in that rate of workload decline and companies employing 300-599 operatives showing a sharp improvement.
But the largest contractors (600+ operatives) have returned a deterioration on the last quarter of 2008.
Commenting, Rosemary Beales, CECA Director, said: "While we hope slowdown in the fall continues, it is too early to speculate on a recovery in 2009.
"Workload across the sector has been hit very hard in the last year and we have yet to see a significantly positive impact on workload from the Government's fiscal stimulus package put forward in November 2008.
"Although the recent Budget contained some welcome measures that may boost areas such as energy and housing in 2009/10, it did little for the industry overall. The outlook is not positive for workload up to 2012 and is distinctly bleak beyond it.
"Contractors need greater confidence if they are going to continue to invest in training and technology to meet the demands that will follow the upturn. Whilst we appreciate confidence is in short supply across the economy, the Government must take a new approach to critical national infrastructure and provide clear and consistent forward plans for investment and improvement."
(CD/JM)
CECA members reported a further deterioration in workloads in April 2009, continuing the downward trend established in July last year. However while deeply negative, the apparent rate of deterioration in workload was less than in January. The position in England was only marginally better while Scotland and Wales showed contrary results - deteriorating sharply in Wales but improving relatively in Scotland.
CECA surveys workload by size of company and the largest have so far fared marginally better than the smaller and medium sized contractors during the current downturn. Results for Q1 2009 show lower workloads across-the-board, with the small and medium sized contractors enjoying a relative reduction in that rate of workload decline and companies employing 300-599 operatives showing a sharp improvement.
But the largest contractors (600+ operatives) have returned a deterioration on the last quarter of 2008.
Commenting, Rosemary Beales, CECA Director, said: "While we hope slowdown in the fall continues, it is too early to speculate on a recovery in 2009.
"Workload across the sector has been hit very hard in the last year and we have yet to see a significantly positive impact on workload from the Government's fiscal stimulus package put forward in November 2008.
"Although the recent Budget contained some welcome measures that may boost areas such as energy and housing in 2009/10, it did little for the industry overall. The outlook is not positive for workload up to 2012 and is distinctly bleak beyond it.
"Contractors need greater confidence if they are going to continue to invest in training and technology to meet the demands that will follow the upturn. Whilst we appreciate confidence is in short supply across the economy, the Government must take a new approach to critical national infrastructure and provide clear and consistent forward plans for investment and improvement."
(CD/JM)
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