A new survey from Build UK has revealed its members are concerned about future workloads following the Brexit vote
Build UK’s second State of Trade survey for 2016 has revealed significant concerns relating to future workloads after the UK voted to leave the EU.
The survey, which was carried out by Glenigan, found 81 per cent of contractors are operating at over 75 per cent of their capacity, and 46 per cent at over 90 per cent.
It also found that while enquiry levels during Q2 remained largely unchanged when compared to the previous three months, output saw a 22 per cent increase. Comparatively, the previous two surveys saw this figure increase by just five and three per cent.
A total of 19 per cent of contractors said they anticipated workloads would rise based on the results of Q2. In particular new build infrastructure and commercial construction is expected to see growth. However, this result is a decrease of eight per cent when compared to the previous quarter, which reached 27 per cent. Q4 2015 saw this figure hit 30 per cent. Build UK said this reflected an increasing uncertainty surrounding the industry pre- and post-referendum.
The picture over the next 12 months looks uncertain, with 21 per cent of contractors expecting workloads to rise—a five per cent decrease on the previous quarter and a 26 per cent decrease on Q4 2015.
Contractors said while they felt their workloads would increase in a year’s time they also said the majority of industry sectors would see a decline in output. Only repair and maintenance work in the private sector is expected to increase.
The survey also found skills problems continue to dog the sector, with 82 per cent of contractors reporting difficulties recruiting. Three-quarters of firms said they had found it hard to recruit supervisors and bricklayers, while two-thirds had problems hiring carpenters, jointers and ceiling fixers.
Difficulties recruiting staff was said to be because of lack of experience (61 per cent), lack of skills (57%) and a lack of qualifications (41%). This has pushed up the cost of labour, with 45 per cent reporting an increase here and 65 per cent reporting higher costs than a year ago.
The survey found 35 per cent of contractors were waiting at least 46 days on average for payment, despite only 18 per cent having an average contract term of 46 days or more.
Build UK Chief Executive Suzannah Nichol MBE said: “A period of uncertainty was inevitable following the decision to leave the EU and that has been reflected in the State of Trade results and, in particular, our members concern over future workloads.
“The most important thing is that we make the most of the opportunities presented by the referendum result, and we are already working closely with members to present a comprehensive response to Government with a view to crafting the best possible conditions for our industry to thrive in a post-Brexit Britain.”
