The Construction Products Association (CPA) says the sector continued to decline in the fourth quarter, even as the economy pulled itself out of the recession.
National Federation of Builders chief executive Julia Evans said the findings confirmed the pattern of previous recessions which showed the construction industry experiencing further falls in output as the rest of the economy showed signs of growth.
The CPA said 89% of lightside product manufacturers did not expect sales to change significantly during the first quarter of 2010, while 91% of building contractors reported that their orders books fell in the industrial sector during the fourth quarter.
Some 63% of building contractors reported declining profit margins during the final quarter of 2009 due to falling tender prices. In addition, 75% of lightside manufacturers and 33% of heavyside manufacturers reported raw material and energy costs had risen.
CPA economics director Noble Francis said the industry had now been in decline for two years and the government’s intention to cut public spending by more than 50% during the next four years risked delying recovery until 2011. He expressed concern at falling workloads and rising costs.
