CECA track market slowdown

The contracting sector is showing signs of reduced workload

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Figures from the Civil Engineering Contractors Association (CECA) show a sharp slowdown in the workload of its members compared to April.

Director of CECA National, Rosemary Beales said: "Civil engineering is showing signs of a deceleration in workload, in line with the wider industry picture.

"Smaller contractors, particularly those engaged in preliminary works for new housing and other developments, have continued to struggle and it remains a deeply worrying trend.

"Of fresh and equal concern is the drop in workload for the larger contractors reflected in the difference between the July survey and the previous two quarters.

"The latest survey also reveals a sharp change in the previously optimistic outlook among contractors. Expecting workload, new orders and Repair and Maintenance jobs to drop sharply in the next 12 months shows contractors are clearly not confident that investment in critical national infrastructure will not be diverted to other areas of public spending.

"Major projects such as Crossrail and new-build nuclear need to move forward at a steady pace if the Government is to combat this loss of confidence," she said.

CECA uses 'workload balance' figures - the difference between the number of contractors reporting higher workload compared to the number reporting lower workload - now at -18% for Great Britain, down sharply from +38% in July 2007.

Worst hit are medium-sized and large contractors, those employing between 300 and 599 operatives falling from +56% in April 2008 to -27% in July 2008, and down significantly from the balance of +28% recorded in July 2007. Those employing 600 or more showed a blance of -20%, down from +68% a year ago.

businesses of less than 115 people showed a balance of -14%, down from +10% a year ago, and businesses of 115-299 employees had a balance of -9%, down from +22% a year ago.

Scotland is the only region to report a positive balance at +17%, thanks to an extensive public works programme. England and Wales are -22% and -32% respectively, with England showing the greatest fall, from +45% in July last year.

Rail and airport sectors showed positive balances, while harbours and waterways were neutral. All other types of work were negative. Strategic roads were at -21%, local roads at -19% and water and sewerage at -13%, with preliminary works at -38% compared to +37% in July 2007.