Although the results for the second quarter of 2010 show Specialist Contractors reporting increases in enquiries (42%) and orders (39%), just 38% of respondents anticipate an increase in workload over the next 12 months, down from 53% last quarter. As existing work nears completion, the conversion of future enquiries into orders will become critical in the coming months and the Coalition government's cost-cutting measures are likely to have a significant impact.
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In spite of this future uncertainty, there are early signs of employment pressures with 78% of Specialist Contractors experiencing recruitment difficulties due to a low number of skilled applicants. This highlights the need for continued investment in training if a future skills shortage is to be prevented.
Payment practices have worsened this quarter with just 3% of Specialist Contractors reporting payment within 30 days and almost one in four waiting longer than 60 days. The NSCC Chief Executive, Suzannah Nichol, said: "Specialist Contractors continue to face difficult trading conditions and this quarter’s results highlight the
importance of public sector funding to construction. With the industry accounting for 10% of GDP and generating £2.84 in economic activity for every £1 invested in it, the case for maintaining capital spend on construction projects couldn't be clearer."
(CD/KMcA)
