RICS survey shows signs of recovery in construction industry

May 28 2009 by Chris Knox, The Journal

RICS chief economist Simon Rubinsohn said: “Activity is still declining across the construction sector, but it appears to be doing so at a lesser rate than was previously the case and public sector projects will play a key role in any recovery as long as the finance is made available to prevent then from stalling.

“Despite some sub-sectors showing slightly more positive signs, construction output is likely to post a double-digit drop over the course of 2009, with a further loss of employment and skills in the industry.”

But with a number of public sector contracts unveiled recently, some North East builders are more confident than others. For example, Newcastle company Surgo has just landed two contracts to design and build a 1,750sq m production and clean room facility at Netpark, Sedgefield, and to enlarge an office building in Peterlee.

Surgo director Jeff Alexander said: “There’s no doubt that things remain tough out there. However, we are seeing some signs that conditions are starting to get a little better.

“The RICS figures are certainly encouraging and we are certainly seeing a number of public sector contracts coming through, albeit on a smaller scale than we would like.”