No optimism in these lean times

THIS has certainly been a challenging year for the construction sector. Growth was hampered by planning barriers, weak credit conditions, and the scaling down of public sector investments and expenditure.

A recent survey, conducted by hire company Speedy Services in conjunction with the Confederation of British Industry, outlined the negativity running through the sector especially for SMEs, which seemed to be hit the hardest this year.

45% of construction firms asked reported a declining availability of finance this past year, with one third of those surveyed predicting further deterioration in conditions next year.

42% of construction businesses do expect to see growth next year, yet optimism is thin as only 4% expect any growth to be significant.

Although conditions remain tough, the construction sector is determined to work with the Government to play a vital role in rekindling economic growth throughout the UK.

In light of the Government's Autumn Statement, we will hopefully start to see positive change and this spending from the Government should provide much needed momentum for the sector.

However, the Government needs to move quickly to make these promises a reality so that construction companies can hit the ground running as the New Year comes around.

The survey also highlighted opportunities that the construction industry should be looking at and taking advantage of. The sector needs to appreciate the importance of investing in apprentices.

Sadly, training can often be one of the first areas to be reined in when the purse strings tighten.

Training your workforce is especially vital with 56% of businesses surveyed reporting that they had experienced difficulty in finding staff with appropriate skills.

However, is it important that a future generation of skilled and trained staff are available for when the recession starts to abate, as it surely will.

The survey depicts a sector well-placed to boost skills and create jobs, with 77% of businesses asked having plans to expand spending levels on investments into training and apprentices to ensure that employees have the skills required for the future.

The sector has the ability to boost the economy and create much needed jobs. Focus needs to be set on laying solid foundations for growth such as investment into infrastructure, supply chain development and future skills.

For more information on Constructing Excellence in the North East, please contact chief executive Catriona Lingwood on 0191 374 0233 or catriona@cene.org.uk.

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