Construction orders jump 18% in last quarter of 2010

Grant Prior 13 years ago
Share

Construction orders during the last quarter of 2010 enjoyed a 3% rise on the same period last time and an 18% jump on the previous three months despite the bad weather.

Industry experts warned the increases were still dependent on spending by the public sector on social housing, education, health and infrastructure with little sign of a recovery in the private sector.

Noble Francis, Economics Director of the Construction Products Association said: “Although the final quarter highlighted an 18% rise in new orders, the extent to which this is reliant on the public sector is still extremely concerning given the sharp cuts in public spending outlined in the Comprehensive Spending Review that will occur after April.

“Public housing orders were 69% higher than during the fourth quarter compared to the third quarter. Orders for public non-housing, which includes education, health and work on the Olympics, rose 29% during the final quarter and infrastructure orders rose 37% over the same period.

“While commercial and private housing orders remained flat, orders for industrial factories and warehouses rose by 14% during the final quarter of the year yet, overall, orders for construction work in 2010 as a whole still remained at 2009 levels.

“Given the extent of the public sector cuts it is essential that private sector construction picks up.

“The Association has made a number of suggestions regarding this in advance of the Budget, such as reducing VAT on repair and maintenance work valued less than £10,000 and work that improves the Energy Performance Certificate rating of a property by 10 points.

“Measures such as this clearly indicate how construction can help to drive economic growth and rebalance the economy at a time when public finances are constrained.”

Alasdair Reisner, CECA director of external affairs, said: “While today’s figures for construction orders are welcome, indicating growth in new work for the industry of around 18 per cent on the previous quarter, it must be remembered that these figures are being compared with the period that followed the General Election where many decisions were put on hold.

“The impact of this hiatus is clear to see in the previous Q3 2010 order figures where falls in public sector account for a large proportion of the overall decline in new work won.

“And the orders figures for the industry in Q4 2010 are still around 10 per cent lower than the levels typically experienced in the decade running up to 2007, when the first impacts of the slowdown in the economy started to hit the industry. This means that, while the improvement in orders will provide support to the industry, there is still a long way to go if it is going to recover fully.

“Unfortunately these figures also don’t reflect the impact of the forthcoming cuts to public sector spending. When these do kick in later this year, there is a question mark over whether private sector construction investment will be able to overcome these falls. If not, the sector will continue to face difficult trading conditions for some time to come.

“CECA is now looking to next week’s Budget as an opportunity for the government to offer support to the private sector, providing measures in areas such as planning and regulation where existing policies act as barriers to development.”

Latest news

Morgan Sindall to build former Willmott Dixon leisure job

New contractor appointed on
15 hours ago

Graham consortium wins £400m Manchester job

Equitix consortium to now work up DBFO plans for University of Manchester’s Fallowfield Campus
11 hours ago

Keltbray looking to sell infrastructure business

£378m turnover rail, energy and highways business up for sale
22 hours ago

Innovative viaduct building method used for first time in UK

HS2 contractors will build nine viaducts in Delta Junction using special cantilevered process
22 hours ago

Unite buys London site to fast-track 444-bed student scheme

£800m to be spent on London development pipeline in next five years
22 hours ago

CITB awards £2.5m of contracts to management consultant

Three outsourced deals in the last year for "project leadership and management consultancy"
22 hours ago

Village centre approved for 6,000-home new town plan

Hampshire's Welborne Garden Village plan has been in the pipeline for two decades.
21 hours ago

£3m fine after cherry picker demolition death

Court rules after tragedy during decommissioning of gas rig
22 hours ago

BAM plans wave of job cuts at UK Construction arm

Co-op Live arena plunges Bam Construction to £19.5m first-half loss
2 days ago

Robot tunnel builder goes into administration

Hypertunnel was hoping to revolutionise how underground structures are built
2 days ago

Wates to build £86m Guildford Council housing scheme

40% of the 248 homes will become council homes under partnership deal
2 days ago

“Scrap CITB” say three quarters of construction firms

Payroll giant Hudson Contract calls for CITB to be absorbed into new Skills England training body
2 days ago

£100m Prestwich Village revival approved

Vinci and Willmott Dixon in chase for Muse-led regeneration scheme
2 days ago

Carbon negative asphalt aggregate trialled on M11

Skanska and Tarmac test CO2 absorbing aggregate material on stretch of Essex motorway
2 days ago

Father and son sentenced over covid construction loan fraud

Bristol builders given suspended jail sentences over bogus Bounce Back Loans
2 days ago

Beck Interiors files administration notice

Supply chain has suffered delayed payments from £139m-turnover luxury fit out specialist
3 days ago

Green light for York Central civil service office hub

£60m office project accelerates York Central goods yard redevelopment
3 days ago

Blenheim House Construction enters administration

Administrators looking at options on present projects
3 days ago

Profits rise at Esh Group with more to come

Contractor confident about year ahead as market conditions move in right direction
3 days ago

Piling specialist Van Elle sees housing orders rise 30%

Mark Cutler says firm on course to deliver 10% annual sales growth
3 days ago

HS2 to spend £100m shutting sites where work never started

Remediation of sites no longer needed for cancelled Phase 2 will take three years
4 days ago

Willmott Dixon wins £61m deal for new Army dog unit

Contractor to revamp Kendrew Barracks in Rutland
3 days ago

Stockport advances 4,000-home Town Centre East plan

Council seeks consultants to steer plan for 280-acre area in the city
3 days ago

ISG sale imminent as buyers set-up UK holding company

South African nutrition entrepreneur and Australian partner primed to take over
4 days ago

CR Construction wins £210m Manchester towers

Construction to start next year on four blocks ranging from nine to 34-storeys
4 days ago

Southern Housing to rationalise supply chain following merger

Firms put on alert for £1.7bn construction framework renewal
4 days ago

Decision delayed on 52-storey Isle of Dogs tower

Hong Kong developer plans 460 flats block next to Millwall Inner Dock
4 days ago

Go-ahead for £850m North London estate rebuild

Flagship Edmonton housing estate redevelopment will deliver 2,000 new homes
4 days ago

Mace lands £184m Oxford Science Park contract

Contractor to build trio of laboratory and office buildings
5 days ago

Worker paralysed in 30ft fall during electricity pylon demolition

Specialist firm fined £240,000 after court hears linesman attached lanyard to a loosened steel section
4 days ago

Contractor services