Constructing Excellence: When number-crunchers get it wrong

AS THE American writer Mark Twain once noted: “There are three kinds of lies – lies, damned lies and statistics”. This adage of treating statistics with caution was certainly reflected in recent data released by the Office for National Statistics (ONS).

The construction industry was somewhat taken aback by the information, which indicated what appeared to be a miraculous upturn, and was in stark contrast to what most companies in the sector are experiencing.

It turned out that the ONS’s number crunchers had “crunched up” the figures, saying that several construction sectors had grown substantially when, in fact, they had not.

As a result, the ONS, which contended that construction in the UK had expanded by 2.3% in the first quarter of 2011, had to recall its report and issue a correction. The revised data said that the industry’s overall growth was actually 0.5%.

This faux pas by the ONS has brought to the fore how much statistics and sector reports contribute to the assumptions surrounding how industries are performing and how much they are contributing to the country’s economic well-being.

Research with a nationwide focus may have too broad a sweep to reflect what is going on in different regions with companies in the North East, for example, having to deal with different concerns and challenges to those in the South.

However, reports do have their place. They can, when accurate, give a snapshot of what is going on in a sector and act as a catalyst for what needs to be done to help an industry improve – whether from within, using its own resources, or with the help of the Government.

Another way of promoting a sector’s levels of activity is to have a strong network that can communicate to companies what is happening.

Sharing information, from how a sector is faring to best practice, has the ability to help build foundations upon which companies can plan for the future with confidence.

Constructing Excellence, along with partner organisations and companies, is committed to helping the sector shape up to the challenges and opportunities that may lie ahead. This includes organising seminars, sharing information and compiling reports that are both relevant and accurate.

For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on 0191-3740233 or catriona@cene.org.uk

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