The most recent workload trends survey carried out by the Civil Engineering Contractors Association (CECA) shows few signs of a widespread recovery in the civil engineering sector.
Nearly half (43%) of firms said their workload in the first quarter was less than during the same period a year ago. Just 16% saw workloads increase. The balance between the two (27%) is slightly worse than seen in the previous quarter.
There was some growth reported in workload in the rail, water and power sectors, but not enough to offset the continuing decline in road work.
The squeeze between inflation and tender prices was evident. Three out of four respondents (76%) reported rising costs, and 42% reported prices rising faster than a year ago. A majority also reported tender prices continuing to fall.
CECA director of external relations Alasdair Reisner commented: “For an industry still seeking the light at the end of a very dark tunnel, there are few grounds for optimism in this survey.
“While signs of growth in rail and power are certainly welcome, the fact that the overwhelming balance of respondents reported continuing falls in workload is a real cause for concern.
“CECA is hopeful that the policies now being implemented by Infrastructure UK and others will support a return to growth in the civil engineering sector. However, the results of this survey demonstrate that, for an industry being squeezed between rising costs and falling tender prices, the government has no time to lose in taking important measures to streamline procurement and encourage private sector investment.”
The full April 2011 CECA Survey of Civil Engineering Workload Trends survey is available by clicking here.
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