The National Specialist Contractors Council (NSCC) State of Trade Survey for the second quarter of 2008 shows a sharp decline in both the number of enquiries and the number of orders which is a clear reflection of current economic conditions.

However, 76% of Specialist Contractors reported working at over 75% capacity with 49% working at over 90% capacity.

Material costs continue to rise with 88% of respondents reporting rising prices throughout the supply chain which is having an impact upon margins in the specialist sector particularly with the price reductions being demanded by the house building sector.


Although the current market situation has eased the difficulties in recruiting skilled labour, certain sectors such as painting, piling and plumbing are still struggling to recruit with the low number of skilled applicants cited as the major cause of the problem.

Late payment and retention abuse continue to plague Specialist Contractors with an average of £116,000 being withheld in retention against respondents at any one time. This clearly supports the need for the NSCC Fair Payment Campaign which aims to improve payment practices throughout the construction industry.

(CD/JM)