Sub-contractor Pay Trends September 2017

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Hudson Contract delivers the most accurate indications of pay trends across the construction industry, using payroll data for over 2,200 construction companies to publish the average pay for a spectrum of 17 different trades now split across 10 regions.

There was a noticeable drop in earnings in September of just over two per cent, or £17 a week, with freelance builders in the North West particularly hard hit. Earnings in the region have plummeted by more than 5 per cent, which equates to a drop of £40 a week. Only the East Midlands has bucked the trend, with a modest 1 per cent increase on last months.

“It’s an amber light, for sure,” says Hudson Contract Managing Director Ian Anfield.  “And our data is also indicative of the national picture. While it’s never good for anyone to see a downward trend, September earnings have dropped for the past three years, ahead of a strong finish to the end of the year. So let’s not panic just yet.”

National Weekly Average Earnings, September 2017:  £835

This month’s winners are:

• Shop fitting:  +3.3%

Another strong month

• Roofing:  +0.6%

Wales doing particularly well
And the losers:

• Plasterers:  -8.8%

Losses in East of England despite gains in London

• Steel & Timber Frame Erection:  -7.6%

Down for the second successive month
Specialist Trades:  -6.2%
Yorkshire & Humber light on work

Meanwhile, the latest IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) has fallen to 48.1.

“That’s significant,” Ian Anfield observes. “Anything below 50 signifies negative growth, and this is the first time it’s happened since the referendum.  September has been a difficult month for all in construction.  New projects have failed to materialise to replace completed contracts.” 

Of construction’s three sectors, civil engineering has been worst affected with the steepest fall in activity for four and half years.  Commercial is down too, leaving house building as the only sector that continued to expand – although at its slowest rate for six months.

“There’s no point pretending anyone is happy about this,” Ian Anfield concludes.  “But despite the uncertainty that continues to surround British politics in general and Brexit in particular, compared to this time last year, earnings in all regions are up.  The final quarter of the year is going to be extremely important in terms of understanding where the industry – and the country – is going in economic terms.”

To access Hudson Contract’s Construction Pay Trends index, please click here

North East

North West

Yorkshire & Humber

East Midlands

West Midlands

Wales

East of England

London

South East

South West