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RELATED ARTICLES: UK government urged not to cut construction spend | UK spending cuts threaten ME construction recovery | Arabtec posts three and six-month falls in profits
The UK construction industry is facing a fresh decline in output in the second half of 2010, according to the latest Construction Trade Survey, published this week.
Further falls in construction work are predicted in light of looming public sector spending cuts, and after both building and civil contractors experienced a drop in business in the first and second quarters of the year.
Among the key findings, contractors workloads were found to have fallen for the ninth consecutive quarter in Q2, with 20% of builders stating that figures had dropped compared with 2009.
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For the same period, 56% of contractors reported a fall in margins, 53% stated a fall in tender prices and nearly 30% reported a decline in commercial contracts.
The concern in the GCC is that the UK market will have a direct impact on the Middle East, increasing the amount of international competition in the region.
Speaking about the survey, the Construction Products Association’s economics director Noble Francis said: “Over the next few years, construction is braced for a fall in public sector investment and will increasingly need to look to the private sector for growth.”
He added that like the GCC, it will be ever more critical for investors, developer and contractors to focus their capital investment on areas such transport, energy, and other key infrastructure projects that will do most to stimulate wider economic recovery.
Other key findings were reported by heavyside manufacturers, 61% of which reported no change or a fall in sales in the second half of the year.
The survey follows a tough 18 months for construction in both the UK and the Middle East, during which time the market saw its sharpest decline in 35 years.
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