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Construction activity rises for sixth consecutive quarter

Posted by Marianne
November 25, 2014 in Industrial

The latest data from the UK’s building industry contractors has shown a sixth quarterly rise in a row; the first time such growth has been seen in over six years.

All across the sector growth is being seen, with 43% of firms reporting that private commercial work, such as the construction of offices and retail premises, is the biggest growth area.

A further 41% of companies saw growth in the industrial sector for the provision of greater warehouse flooring and factories.

Other findings in the latest survey of the construction industry showed that 60% of building firms and sub-contractors reported an increase in output for the third quarter of 2014, although 11% also reported a fall in margins.

This is largely due to the rising costs, with 68% of enterprises seeing an increase in labour expenses and 74% witnessing a rise in the cost of building materials.

The survey also showed that there is an ongoing problem in recruiting new workers to the construction industry, with the director of the UK Contractors Group, Stephen Ratcliffe, commenting:

“Labour cost rises do signal the need for the industry to attract new recruits and emphasise the importance of our campaign ‘Born to Build’, which is trying to entice young people to consider a career in construction.”

Forty-one percent reported problems in hiring bricklayers, whilst 39% said the same about carpenters. This is an improvement from the findings in Q2, however, where 47% of firms reported problems in recruitment in both fields.

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