Hopeful signs for civil contractors in the South and South West
Civil engineering contractors detect signs of a modest turnaround in their fortunes in the fourth quarter of 2012.
After two consecutive quarters of clear decline, members of the Civil Engineering Contractors Association (CECA) are now equally split between those whose workload is declining and those for whom it is increasing.
Less good news is that members’ order books show a second consecutive decline for the quarter. There were 5% more firms reporting declining orders than increasing orders.
CECA Southern Executive Director Alan Taylor said: “This survey shows a welcome improvement in output. Positive signs in members’ workloads show the industry is moving in the right direction in the South and South West. These figures must continue to increase if contractors are to deliver growth in the economy through the multiplying effects of infrastructure provision. For this reason, we are very concerned that the rise in output is not matched by positive figures for future orders.
“As with the rest of the UK, CECA members in the South and South West are facing challenging trading conditions as the squeeze on contractors’ margins continues; costs continue to rise while tender prices fall.
“Government investment in infrastructure, and particularly in our roads network, is vital to enable it to act as an engine for growth in the economy; the dualling of the A30 between Temple and Higher Carblake and improvements to the A27 at Chichester are both good examples of where investment is needed. From our own research this would be a good investment for the Government as for every pound spent on infrastructure, there is at least a threefold return”.
