Growth has been seen in construction, but the skills shortage still remains a major concern for the sector…
Activity across the UK’s construction sector continued to see growth, it has emerged. Output rose for the eleventh consecutive quarter in Q4 despite significant troubles with recruitment.
The figures, published by the Construction Products Association, forms part of the Construction Trade Survey. This revealed a number of firms saw building activity increase in private housing, commercial construction, and the infrastructure sector.
Some 23 per cent of main building contractors reported construction output grew during the fourth quarter of 2015 when compared to the same period the year before. A total of 31 per cent of specialist contractors also said they had experienced growth.
SME contractors saw growth, with six per cent reporting increased workloads and enquires in Q4 compared to the previous quarter.
Private housing saw growth, with 25 per cent of main contractors seeing an increase in orders, while industrial orders rose six per cent. Public housing saw a fall in Q4, with 55 per cent of main contractors reporting this.
However, the figures also revealed the skills crisis remains a significant problem for the sector, with 60 per cent of main contractors reporting difficulties recruiting carpenters. Some 50 per cent could not find plasterers, and 47 per cent could not recruit bricklayers during Q4.
Additionally, 41 per cent of main contractors said they had seen an increase in labour costs during Q4 when compared to the previous quarter.
Rebecca Larkin, senior economist at the CPA, said: “It is encouraging that growth continues to be reported across the entire construction supply chain.
“Overall, the near-term outlook appears positive, as firms from construction product manufacturers at the beginning of the supply chain to specialist contractors, SME builders and civil engineers carrying out work on the ground reported modest increases in enquiries, orders or anticipated sales for Q1 and the 12 months ahead. Main contractors’ order books suggest some weakness in Q1, however.
“Growth will continue to be led by work in the private housing, industrial and infrastructure sectors, but there are clearly areas that are languishing.
“Activity and orders were reported to be lower in public housing, which reflects the headwinds facing housing associations and local authorities amid recent policy decisions.
“Orders were also reported to be lower for repair and maintenance (R&M), both housing and non-housing, in Q4.
“A shortage of skilled on-site labour remains the largest threat to construction activity over the coming months, however.
“Half of main contractors found it difficult to recruit bricklayers, carpenters and plasterers in Q4, which continues to exert upward pressure on wage bills and raises the concern of whether expected volumes of work can be delivered.”