Civils firms upbeat on pipeline despite tough first quarter

Aaron Morby 4 hours ago
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Civil engineering contractors are shrugging off a weak start to the year after stronger order books fuelled confidence that infrastructure workloads will rebound over the next 12 months.

The latest Civil Engineering Contractors Association workload survey found order books climbed to their highest level for three quarters, with a net balance of 19% of firms reporting fuller pipelines.

Looking ahead, a net 60% expect workloads to increase over the coming year, while 55% forecast growth in new work orders.

The upbeat outlook comes despite workloads plunging during the first quarter. A net balance of 7% of contractors reported activity had fallen compared with a year earlier, with one in three firms seeing workloads decline.

The fall was most pronounced in Scotland while firms in Wales reported an uptick in the opening quarter of 2026.

CECA warned the slowdown should act as an “alarm bell” for Government, arguing that infrastructure ambitions now need to be backed by projects starting on site.

The weakest markets were preliminary works, communications and motorways, while airports, renewable energy, water and sewerage and local roads all recorded stronger activity.

Contractors also continued to recruit through the slowdown. Employment increased for skilled operatives and staff during the quarter, and more than half of firms expect to expand their workforce over the next year.

Skills shortages remain the biggest constraint on growth, with 55% of firms dissatisfied with the availability of skilled operatives and 48% reporting shortages of professional staff.

Ben Goodwin, director of policy and public affairs at CECA, said: “While it is disappointing to see workloads fall in the first quarter of the year, the wider picture is one of a sector that remains resilient and is looking ahead with confidence.

“Order books have strengthened, expectations for the next 12 months remain positive, and firms are continuing to expand their workforces. This shows that civil engineering contractors are ready to deliver the infrastructure the economy needs.”

He added that ministers must now accelerate the delivery of infrastructure programmes, warning that delays to major projects risk eroding confidence and making it harder for contractors to invest in people, plant and productivity.

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