Tom Keighley

Member Article

Cuts affect construction industry

Public sector cuts have begun to negatively impact the construction industry, and rising prices and weakening domestic demand are causing a slump in trade.

Year-on-year sales have fallen according to 44% of heavy side manufacturers in Q3, although 52% of manufacturers of light side products, typically used in the later stages of the construction process, continued to see growth.

However, they still expect to see falling sales in the coming year.

Commenting on the figures, Construction Products Association senior economist, Kelly Forrest, said: “Although industry has been well aware of the cuts to public spending since the CSR last October, concerns for the industry have been heightened by uncertainty regarding UK and global economic activity.

She went on to say that while industry is well aware of the need by government to address its finances, it is critical that government does enough to sustain economic growth by investing in areas of long
term benefit to the UK, such as house building and infrastructure.

To do so, she suggested bringing forward finance allocated for future years and attracting private finance at a time when public finances are constrained.

This was posted in Bdaily's Members' News section by Tom Keighley .

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