Civils contractors today warned that rising costs and skills shortages are emerging as new challenges as prospects for the infrastructure sector improve.
The Civil Engineering Contractors Association (CECA) Workload Trends Survey for 2013 Q2 found that workloads remained flat for the third consecutive quarter. However, order books grew for the first time since early 2012, with most companies expecting them to improve in the coming year.
But this growth is under threat where companies are hit by cost inflation and difficulties in recruiting suitable staff.
This has been demonstrated by responses to a special question asking CECA members about their main concerns. For the first time since the start of the downturn, both recruitment and inflation have risen up the agenda, and are now second only to workload amongst members’ worries.
Commenting, CECA director of external affairs Alasdair Reisner said:
“Our members have told us that although they expect workloads to rise over the next year, rising costs and an inability to recruit skilled workers are impeding trading conditions in the sector.
“Infrastructure contractors are particularly vulnerable to inflation in the costs of materials and fuel. The UK also needs to address skills gaps in the industry as a matter of urgency.
“If the UK fails to address these issues, our infrastructure sector will be unable to generate the economic growth we need for a sustained and sustainable recovery.”
Head of infrastructure at WSP Duncan Symonds said the skills shortage was a reality for consultants as well.
“We are seeing the shortage in real terms, particularly recruiting into mid-level and specialist roles, and I have no doubt it will continue to grow as we enter a period of infrastructure renaissance and unparalleled Government support," he said.
"However it’s no good just hoping this will change in the short-term, industry must take action, ensuring they maximise and develop individual talent and nurture the next generation through schools engagement and continued investment in apprenticeships.”
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