Construction job creation hits new record level

Grant Prior 3 years ago
Share

Construction buyers are reporting the biggest boom in new job creation since their monthly surveys began back in 1997.

The latest Markit/CIPS UK Construction PMI survey for July showed new job vacancies opening up at the fastest rate for 17 years.

The index dipped slightly to 62.4 from 62.6 in June bu the headline figure has now posted above the 50.0 no-change threshold for 15 months running.

July data also signalled the steepest rise in residential building activity since November 2003 while rates charged by subcontractors increased at a near-record pace.

David Noble, Group Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: “The house building sector is racing ahead this quarter with the fastest growth in construction of homes for over a decade.

“The industry as a whole continued its impressive growth, dipping slightly from last month’s high.

“The boom in house building also encouraged the fastest acceleration in employment the index has ever seen over its 17 year history.

“The commercial and civil engineering sectors also pulled their weight with continued growth, to deliver one of the fastest overall increases in output since 2007.

“One concern however, is the strain on supply chains that could become a roadblock to sustained growth in the future.

“Construction firms reported the sharpest deterioration in the quality of subcontracted work since 1999, which combined with lengthening supplier delivery times could conspire to put the brakes on the sector’s growth.

“But there’s evidence that firms are starting to look beyond in-demand subcontractors and instead further boost their own staffing levels, which goes someway to explaining t he record rise in employment levels.

“In the short term at least, the outlook for the coming quarter is strong with the level of new orders continuing to rise and confidence for the year ahead growing steadily since June. ”

Tim Moore , Senior Economist at Markit and author of the Markit/CIPS Construction PMI, said :“July’s figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn.

“All three core categories of construction activity saw historically steep improvements in output levels through July, unsurprisingly led by a resurgent house building sector.

“Overall the survey adds to the view that construction companies have performed impressively so far this summer, which raises the likelihood that the sands of time could wash away the construction weakness seen in the preliminary second quarter GDP release.

“Looking ahead, a pressing concern for construction companies is the availability of materials and suitably skilled labour to support the recent growth streak.

“Cuts to supplier capacity have ushered in the worst period of input delivery delays since the survey began in 1997, while this summer has also been notable for construction firms reporting near – record increases in rates commanded for subcontracted work.”

For the latest opportunities and to advertise your vacancies click here

Latest news

Banks pledge not to pull plug on Carillion subcontractors

High street lenders promise raft of measure to help small businesses
4 hours ago

Skanska UK on alert as group plans 3,000 job cuts

Skanska Group says UK business focus to switch to core markets
10 hours ago

Carillion sites still on hold as hopes rise for services deals

Insolvency Service update gives hope to suppliers
7 hours ago

Subcontractors left stranded by Carillion “early payment” system

Millions sitting in controversial system may never reach suppliers
13 hours ago

Crunch day for over 8,000 Carillion staff

Carillion went bust with just £29m left and would have been out of cash today
14 hours ago

Balfour tipped for Carillion’s Leeds ring road job

£115m East Leeds Orbital Route contract consolation for Balfour after £45m hit
13 hours ago

Colmore Tang offers early payment to Carillion subbies

Birmingham contractor to speed-up payments to its suppliers hit by Carillion collapse
22 hours ago

Lendlease launches £1.5bn build-to-rent partnership

First £450m tranche invested in private rental build at Elephant & Castle
13 hours ago

Boost your online presence with the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
3 months ago

Government fast-tracks probe into Carillion directors

Business secretary extends investigation into actions of directors and auditors
1 day ago

Race starts for £8.7bn Highways England framework

New approach will allow smaller contractors to take part in regional roads delivery
2 days ago

Supply chain owed £2bn by Carillion

Subcontractors hoping for protection from Project Bank Accounts
2 days ago

Carillion fall-out hits Van Elle and Speedy

Specialist subcontractors start to disclose cost of collapse
2 days ago

Winvic lands Sheffield build-to-rent deal

Construction to start this month on nine-storey block
2 days ago

Willmott Dixon wins second Kent Uni project

Firm to start £13m contract for School of Economic building
2 days ago

Carillion collapse to cost Balfour Beatty £45m

Galliford Try also hit for up to £40m on Aberdeen Western Peripheral Route
2 days ago

Carillion staff and suppliers told to carry on working

Liquidator sets up website offering advice to anyone hit by the collapse
2 days ago

Carillion goes into liquidation

Contractor loses its fight for survival
3 days ago

Construction stops on scores of Carillion projects

Clients in limbo as search starts for new contractors to take on jobs
3 days ago

BAM set for £32m Cornish schools batch

Works starts on first of three community schools
1 day ago

Watkin Jones chief to step down

Mark Watkin Jones announces intention to leave as firm delivers record results
3 days ago

Plan lodged for £35m Aberdeen Uni teaching hub

University plans to start work later this year
3 days ago

Probe starts into land-banking house builders claim

Expert panel named to tackle barriers to building
3 days ago

John F Hunt buys nuclear specialist

Essex demolition group boosts its concrete cutting expertise
5 days ago

Carillion puts administrators on standby

Contractor makes contingency plans as talks continue with lenders
5 days ago

Race starts for £1.5bn flood defence framework

Next generation Environment Agency framework launched
6 days ago

Ardmore profit rebounds on record sales

South East main contractor delivers 4% operating margin from record £370m revenue
6 days ago

Welsh ministers to help fund Swansea £1.3bn tidal lagoon

Welsh first minister tables cash offer to kick-start £1.3bn tidal energy project
6 days ago

Go-ahead for £60m UCLan Preston student complex

Work expected to start next year on Preston gateway building
6 days ago

Subcontractors wanted for Oxford-Cambridge corridor

Supplier event for local specialists: Register now
6 days ago

Contractor services