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Construction seems to be back in recession and this time its the big firms in the firing line

Construction seems to be back in recession and this time its the big firms in the firing line

I will be shocked if construction is not in a technical recession when the first quarter figures are published in a month’s time. That is providing the official construction output data for Great Britain released today is not fantastically revised. What is more we should expect to see bigger contractors squealing the most, as it is the markets they dominate that seem to be under most pressure. I have done a few back-of-an-envelope calculations and (unless I am very much out of…

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The latest construction forecasts may be more optimistic, but the risks haven’t gone away

The latest construction forecasts may be more optimistic, but the risks haven’t gone away

For those who like their news good, the story in the latest construction industry forecasts is that the mood is less pessimistic than it was three months ago. The two forecasts out so far in this spring round – Experian and Hewes & Associates – both tweaked their figures upwards for output over the next three years. Looking at this year, Experian revised its forecast from -5.6% to -4.4%, while Hewes saw a case to reduce the fall from -6.5%…

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Latest construction data underline tough challenge for the industry in 2012

Latest construction data underline tough challenge for the industry in 2012

The latest official statistics show construction output fell by 0.5% in the final quarter of last year. That is in line with the statisticians’ estimate put out with last month’s GDP data. This fall fits with the raft of other industry data that has shown construction work falling. And it also fits with industry forecasts that construction is set to dive into recession again for the best part a couple of years.

Why is confidence rising in the construction industry when it appears set for recession?

Why is confidence rising in the construction industry when it appears set for recession?

I have noted from conversations I have had recently a more confident air about the future within construction this side of the New Year. And the latest Markit/CIPS survey seems to add to this anecdotal evidence with its finding that confidence in the sector in January improved “to the second-strongest degree in the survey history to reach the highest since May 2011”. I’m not sure what that actually means in numbers but it sounds like a lot of improvement.

It’s time for Shapps to find a big bazooka

It’s time for Shapps to find a big bazooka

In September 2010 Grant Shapps set a “Gold Standard” against which he, as housing minister, would be judged – to see a house-building rate at least matching that achieved before the recession. There are few targets (political hostages to fortune, perhaps) discernable from the reams of documentation and hours of speeches and statements made by this Government. But this is one. It is important. The consensus is England needs more homes. Sorry, a lot more homes, more even than the previous…

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2012 will be a stinker for construction say forecasters

2012 will be a stinker for construction say forecasters

Construction industry forecasters are now expecting a drop in output next year of at least 5%. To put that fall in context, there have only been six worse years recorded since the data series began in 1955. And some might see the latest forecasts as potentially optimistic as they assume the Eurozone manages to muddle through its deepening crisis.

There may be less work in 2012, but that doesn’t mean less opportunity for smart construction firms

There may be less work in 2012, but that doesn’t mean less opportunity for smart construction firms

Expect 2012 to start with industry forecasters shading down their estimates for construction growth. But while workload is likely to decrease in 2012, that does not mean that the opportunities for smart thinking and resourceful construction firms need also shrink. I would argue that the very decline in the economy and the stresses caused open up scope for entrepreneurial thinkers with ideas for improving the built environment.

Can George fill the funding gap for construction? The short answer is no and the long answer is no.

Can George fill the funding gap for construction? The short answer is no and the long answer is no.

How much will today’s announcements by the Chancellor George Osborne really change the picture for construction? Will the promise of jam today, tomorrow and for every day in this Parliament really amount to a hill of beans? Well no. But if you want to carry on to find out why not, here we go. I’ll start by trying to get a handle on what the funding gap might be for construction. In fairness its all a bit hypothetical and rests…

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