More gloom for civils contractors says CECA
Civil engineering contractors are predicting a grim 2010, with more reporting falling order books than at any time since the mid-1990s.
In a survey by the Civil Engineering Contractors Association (CECA) of 106 firms, 72% said order books were down on last year with just 8% reporting an increase.
The gap between those expecting orders to fall and those expecting an increase is the biggest the 13 year history of CECA’s workload trends survey.
“CECA members have grave concerns about the future, which should be shared by anyone who recognises the key role that the civil engineering sector must play.”
“CECA members have grave concerns about the future, which should be shared by anyone who recognises the key role that the civil engineering sector must play in delivering and maintaining the infrastructure that is essential for the UK’s economic recovery,” said CECA national director Rosemary Beales.
“While the Bank of England may think that the worst of the recession may be behind us, this is clearly not the view of the civil engineering sector.”
Official figures show that the whole UK economy remains in recession, with GDP contracting by 0.4% for the third quarter of 2009 and construction output falling almost three times as quickly at 1.1% (NCE 29 October).
A grim 2010
CECA’s latest survey shows that firms are planning for a grim 2010, with 42% of firms expecting to cut the number of site operatives they employ, and 33% planning to make staff redundant. Only 6% expect to hire more operatives, and just 3% are planning to take on more staff.
The analysis of workloads by sector now shows that for the first time since the civils market started weakening last year all sectors are shrinking simultaneously.
Rail had until recently been a growth market but has now also started to decline. The consistently weakest performing sector is geotechnical.
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