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Tag: recession

New KPIs show construction is getting more dangerous

New KPIs show construction is getting more dangerous

The construction industry is getting more dangerous as the recession bites. That seems to be one message from the latest industry Key Performance Indicators. The construction industry KPIs for 2010 were unveiled earlier this week and as a package they paint and interesting picture of how the industry is responding to the downturn in work. But it was the health and safety indicator that caught my eye. The results can be seen on the graph and it is worth noting…

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What to make of the conflicting messages from the latest house prices surveys

What to make of the conflicting messages from the latest house prices surveys

As last week closed the Halifax index showed the average price of a home (seasonally adjusted) falling for the second month in a row. This contrasts starkly with the Nationwide data which earlier last week was showing a continuation of a minor surge in prices. Meanwhile the Hometrack survey released last Monday suggests that house price inflation in flagging as activity in the market slows. It is hard to know exactly what to make of these conflicting accounts and to…

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Plant hire prices reveal continued downward pressure on construction supply firms

Plant hire prices reveal continued downward pressure on construction supply firms

The evidence remains strong that prices in construction remain heavily squeezed despite the easing in the recession providing scope for many service providers to push up prices in other sectors. The ONS’s experimental services producer price indices provide data on price movements across a range of businesses providing services to other businesses. The selection includes construction plant hire. The aggregate figures suggest that inflation is once again pressing on business costs, with prices for freight forwarding, motor vehicle maintenance, computer…

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RICS shows construction emerging from recession, but is it really?

RICS shows construction emerging from recession, but is it really?

In the current climate it is encouraging to see construction indicators finally point to growth. And so it is good to welcome the return of the RICS construction workload index into positive territory after two years of slump. Sadly, as is the case with many construction indicators, when they are showing positive results it doesn’t necessarily mean that we are enjoying growth or that growth is coming to construction. So it is I suspect with the latest construction survey from…

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Latest construction forecasts suggest there is more to fear than hope for

Latest construction forecasts suggest there is more to fear than hope for

The latest round of forecasting by construction experts paints a picture little changed from three months ago with little hope of significant growth, much uncertainty and the risks to growth heavily weighted on the down side. The general pattern they expect can be seen from the graph (right). It shows that after the biggest recorded annual fall since comparable records began in 1955 the forecasters expect a continued slide this year. There is some variation in views on this, with…

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It’s a double-dip recession for construction, if the statisticians’ first stab at growth is right

It’s a double-dip recession for construction, if the statisticians’ first stab at growth is right

Construction has fallen into a double-dip recession – that is if the preliminary estimates by the statisticians putting together the first quarter 2010 gross domestic product figures are to be believed. The preliminary GDP figures put growth at a pallid 0.2% for the economy as a whole. This low level of growth will be a huge worry for construction if the figure is not revised upward in later estimates. In fairness the chances of a revision upward in this data…

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Local builders still deep in recession says latest FMB survey

Local builders still deep in recession says latest FMB survey

Evidence that construction is still far from free from the grip of recession has come from the FMB, the trade body that represents many of Britain’s local builders. The survey results show a market that remained in rapid retreat during the first quarter of this year. There is some good news as the graph (right) sourced from the FMB survey shows. The level of new inquiries appears to be levelling out and this has sparked some improvement in the level…

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Why construction firms must recruit financial engineers

Why construction firms must recruit financial engineers

Financial engineers – you can be forgiven for holding them in total contempt. The finger of guilt for the recession ravaging construction firms points witheringly in their direction. But, galling as it might seem, construction now needs financial engineers more than it needs civil, structural, mechanical or electrical engineers. The tools and tool-making talents of financial engineers could prove vital in thawing billions of pounds worth of frozen projects. It offers the potential to generate a vaste source of new…

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Half a million construction jobs to go – it looks like a dead cert

Half a million construction jobs to go – it looks like a dead cert

Construction has now lost 213,000 jobs since the recession started to kick in the autumn of 2008, according to the latest figures. That is about 10% of the workforce. That sounds like a lot and it is. But given the severity of the fall in construction workload to date it is less than you might have imagined. So far we have seen construction output fall by more than 13.4% since the peak at the second quarter of 2008. Meanwhile the…

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