Build on construction’s strengths

THE predictions were right that the economy grew 0.5% in the first quarter, according to the Office of National Statistics’ (ONS) announcement last week.

But it wasn’t just the Labour Party which found reason to bemoan the findings, as a glance at the sector breakdown highlighted a dramatic fall of 4.7% in construction output.

Understandably, the industry’s response was strong. Construction traditionally accounts for 10% of GDP, so the focus must surely now fall upon our sector.

Such a large section of the economy cannot be allowed to continue in decline without being a major area of action for the Government. As the Civil Engineering Contractors’ Association (CECA) rightly pointed out, unless a sector recovery is established, it will continue to act as a serious drag on overall GDP figures.

CECA’s director of external affairs, Alasdair Reisner, said: “Until a resolution can be found to the construction sector’s continuing weakness, the sector may well be preventing the recovery from becoming sustainable.”

Brian Berry, Mr Reisner’s opposite number at the Federation of Master Builders’ (FMB), commented that the figures were no surprise, with the SME construction sector now in its fourth year of falling workloads and little hope of recovery any time soon.

He added: “If the Government is serious about creating jobs in the private sector it will have to do more to reverse the worrying decline in construction.

“This is the sharpest decline in construction activity since the first quarter of 2009, which is bad news for the Government’s growth agenda.”

While the Construction Products Association voiced surprise at the figures, I think they will have come as confirmation of the fears within the sector.

We have seen many companies go into administration in recent months, each one a stark reminder of the economic difficulties we still face.

On the same day the figures were announced, news emerged of the administration of Amdega.

This was one of the best-known names in conservatories and a company which, to the outside world and reportedly with 300 orders on its books, had not had any outward indicators of being under threat.

We don’t always see the struggles of others, but we know they are always there.

Now is the time for those who have the power to give support to our industry to take note and make construction a priority.

For more information on Constructing Excellence in the North East contact me on 0191 374 0233 or catriona@cene.org.uk.

Catriona Lingwood, chief executive of Constructing Excellence in the North East

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