Collapse İn Public Funding Will İnevitably Have A Major İmpact On The Construction Sector

According to the latest RICS Construction Market survey, the impact of government spending cuts and continued concerns over access to finance saw sentiment in the construction industry turn increasingly negative during the third quarter of 2010.

59 per cent of chartered surveyors reported there had been no movement in construction workloads during Q3 2010. Of those who did see an adjustment, it was downwards, with 10 per cent more surveyors reporting that workloads fell rather than increased. Insufficient funding for new developments and continued concerns over the economy were among the factors cited as affecting construction projects.

Significantly, surveyor sentiment was negative for all sectors of the construction industry. Perhaps unsurprisingly in light of government spending cuts, the worst affected areas were public housing and other public works, with negative net balances of -32 and -23 respectively. Sentiment over public housing workloads is now at its lowest level since the survey began in 1994.

Across the UK, all regions reported negative net balances in the third quarter. Northern Ireland recorded the largest deterioration in workloads, with the net balance at -63. Scotland also experienced sharp declines in workloads as did the South West and Wales

Skill shortages for tradesmen remain close to historic lows with just two per cent of surveyors reporting difficulties with recruiting workers. However, there here were slight rises in demand for plumbers and electricians. Looking ahead over the next 12 months, 20 per cent more surveyors expect employment to fall further rather than rise.