These are the principal findings of the state of trade survey of members of the Building & Engineering Services Association (B&ES) covering the six months from July to December 2012.
Overall, B&ES member confidence was found to have reduced –10% fewer respondents than six months ago expect the commercial environment to improve in the short term.
A total of 51% of respondents reported a further fall in tender prices, 29% a continuing decline in direct employment and the same percentage a reduction in the use of agency labour. Additional pressure from the rising costs of materials was cited by 62% of respondents. The continuing proliferation of pre-qualification regimes was cited as a negative factor by 34%.
Geographically, London, Yorkshire and the Northeast experienced the steepest decline – as did firms operating in the domestic and service and facilities sectors. Firms with a turnover of £5m-plus appear to have been less adversely affected than their smaller competitors.
The engagement of apprentices and trainees was seen to have fallen during the half-year – although a small majority of respondents expected to increase investment in vocational training over the next six months, albeit from a low base.
There was a decrease in the number of respondents involved in the installation of renewable technologies during the period – down from 70% six months ago to 63%. Air-source and air-to-air heat pumps continue to be the most popular technologies, followed by solar thermal.
The B&ES state of trade survey was the second to be conducted online by independent research organisation Lychgate Projects Ltd. In all, more than 200 B&ES members took part in the research.
The association has commissioned a further state of trade survey, covering the first half of 2013, to be carried out in July, and intends to repeat the exercise every six months.
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