According to the latest Construction Trade Survey, compiled by the Construction Products Association (CPA), the industry is facing a 12-percent drop in 2009, its sharpest decline on record. Worse, as there appears to be no improvement in the foreseeable future, output is expected to further deteriorate in 2010.
The CPA survey covers the first quarter of 2009. Its participants include building contractors, civil engineering contractors, specialist contractors, and manufacturers of construction products. Results of the survey suggest that more construction jobs across the whole industry are going to be lost. The decline endured in 2008 is set to worsen in 2009, as decreasing demand in the economy will lead to unprecedented reduction in employment.
Speaking of these survey results, Noble Francis, the CPA?s economics director, said: ?The worse fears of those in the construction industry look set to be realised. With deep recession in the economy weighing heavily upon construction, the latest quarter of output within the industry, covering 2008 Q4, already highlighted the steepest decline since 1980. However, the latest Construction Trade Survey suggests that the situation has deteriorated further.??? Those who currently hold or aspire for
construction jobs would certainly find these comments disheartening.
According to the CPA, while the construction industry as a whole will fall 12.1 percent in 2009, the private sector is likely to endure the hardest blow, plummeting 20 percent throughout the year. Specifically, while private housing and the industrial sectors suffered in 2008, more construction jobs are expected to be lost in offices and retail new builds. Private housing repair and maintenance will also be hit hard.
In order to protect construction jobs, the government is urged to encourage clients in public and private sectors to release work in a wide range of procurement methods. The provision of smaller or individual contracts outside of large construction projects is also helpful, as these can be easily completed by small and medium-sized contractors. Finally, there is an urgent need for pressure to be put on those banks that refuse to pass on the funding where it is needed. Only with resources can construction firms operate.