The UK has now experienced 12 consecutive quarters of construction growth, according to the latest survey from the Construction Products Association (CPA).
But despite the strong record, the CPA says the clear theme in the second quarter so far has been one of uncertainty.
The Q1 rise was reported by construction product manufacturers representing the beginning of the supply chain, through to main contractors, specialist contractors, SME builders and civil engineers carrying out work on the ground.
“After a slowdown at the end of last year, firms throughout the construction industry experienced a stronger opening quarter in 2016,” said Rebecca Larkin, senior economist at the CPA.
“In spite of this, the clear theme for Q2 is uncertainty, with main contractors reporting lower orders in all sectors as projects are paused or postponed ahead of the EU referendum in June.
“Beyond that, firms continued to indicate that a shortage of skilled workers is the largest threat to construction activity over the rest of the year.
“Main contractors reported difficulties in recruiting bricklayers, carpenters and plasterers in Q1, whilst low availability of labour was also reflected in upward pressure on wage bills among product manufacturers and civil engineers.”
Key Q1 survey findings include 19% of main building contractors, on balance, reporting that construction output rose compared with a year ago, while 38% of specialist contractors reported a rise in output.
On balance, 13% of SME contractors reported increased workloads in Q1 compared to three months earlier. Some 50% of main contractors reported difficulties recruiting carpenters and 40% for bricklayers and 36% for plasterers in Q1.
SOURCE: TTJonline.com
