Partner Article

Construction industry facing a 'lost decade'

The Construction Products Association (CPA) have said 2013 levels of output will match figures seen in 1999, wiping out more than a decade of growth.

The association also said its “activity barometer” has hit zero for the first time, showing the “parlous state in the industry.”

Noble Francis, Economics Director of the Construction Products Association (CPA) said: “Although April saw a small respite, as the intense destocking in the first quarter of 2009 came to an end and production increased slightly, the increase in sales was very brief and the following months saw a return to the deterioration that was happening prior to April.”

He added: “It is estimated that within construction product manufacturing more than 70,000 jobs have been lost and 12,000 placed on short time working over the past 18 months.”

Only 72,000 new homes will be build this year, according to the association – 20% less than last year and the lowest figure since 1924.

Official figures released last week showed construction output had declined 6.9% in the first three months of 2009, compared to 5% at the tail end of 2008.

Chief Executive of the CPA Michael Ankers said: “The real concern is that with the current state of the public finances, cuts in these government funded schemes are almost inevitable after the election and I is very doubtful that there will be any significant recovery in private sector investment to fill the gap.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .