A gloomier outlook for civil engineering sector

Dec 4 2009 Constructing Excellence with Douglas Kell, The Journal

WHILE many, including the Bank of England, argue that the UK is beginning to see glimmers of light in what has been a deep and dark recession, we in the civil engineering sector are telling a gloomier tale.

The Civil Engineering Contractors Association (CECA) is warning that thousands of jobs could be cut in the future due to a collapse in expected workloads with only 9% anticipating a workload increase.

The CECA’s July 2009 Workloads Trends Survey had initially raised hopes that the sector had reached its lowest point and, like optimistic economists, had spoken of the possibilities of a slowdown in the downturn of the industry.

Unfortunately, this doesn't look to be the case, with their latest survey reporting that 42% of firms expect to make cuts to the number of site operatives that they employ in the coming year, while 33% will reduce their staff head-count.

As director and secretary of CECA (North East), it is so important for me and the Association as a whole to protect the commercial interests of our members in the region.

These survey results are a major blow for an industry which has already been hit hard by the recession. With a General Election next year, now is the time for key players in the civil engineering sector to lobby MPs and forthcoming parliamentary candidates about the importance of public spending links within the industry.

At -64%, the balance between firms reporting increased workloads in the last year, and those reporting a reduction, is the worst result in the survey's 13-year history.

Potential jobs cuts, in an industry that employs nearly 100,000 people, could have a major impact on the jobs market and make it even harder for graduates to get their first steps on the civil engineering ladder.

The news fromthe survey is perhaps something that won’t shock some, especially in the North East. With the boom and bust years in the housing market and the footfall getting bigger in local job centres, job cuts are often at the forefront of people's minds.

It is difficult to see how long it will take for the sector to recover from the economic difficulties that it has faced over the last year. I hope that 2010 will bring better things for the sector and that the surveys in months to come show improvements for business and increased workloads.

While this may be a pipe dream, certainly for early next year, what is certain is that we all need to pull together to ride the waves until we see bank notes, not the Bank of England, showing us the way forward.

For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on 0191-383 7435 or catriona@cene.org.uk

Douglas Kell, director and secretary, Civil Engineering Contractors Association (North East)