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More Positive News In The Construction Market

More Positive News In The Construction Market

CONSTRUCTION COMPANIES REMAIN OPTIMISTIC ABOUT FUTURE

Almost 70 per cent of North East construction companies are more optimistic about their future prospects than they were 12 months ago, according to a new report.

Law firm Irwin Mitchell carried out a survey of more than 600 companies, with 69.5 per cent expecting a brighter future.

The survey did, however, highlight growing concerns amongst senior decision makers about the cost of labour, with 61 per cent expecting wages to rise during the rest of 2014.

According to Irwin Mitchell, this is being caused by a skills shortage in the sector.

Julie Morrissy, construction partner at Irwin Mitchell, said: "On the whole, these results reflect an improving construction sector. Not only are we seeing the impact of strong demand for house building, the sector is being buoyed by mid to high end residential developments, offices, commercial space and logistics.

"The key now is to ensure that this positivity is sustained into the longer term. The opportunities exist but there are threats and it is vital that companies deal with them effectively.

"The availability of materials is a concern, but with the majority of firms expecting wages to increase during the rest of the year, it’s clear that the lack of skilled workers could also hamper future growth."


Posted on 10th Sep 14

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