Much has been written during this recession about the state of the UK’s construction industry. It’s usually a sector which provides a fairly good barometer of the state of the economy – a little hint of confidence and construction companies rush to make the most of the high land values and prepare for future opportunities.
However, apparently construction is still suffering, cement is unmixed and site equipment is going rusty. According to the Office of National Statistics (ONS), output from the construction industry shrank 4% in the last financial year, and 0.6% between the second and third quarters of this year.
Experts are blaming a lack of commercial loans, difficulties in obtaining mortgages and the Bank of England’s low interest rate policy for the continued problems in the industry.
As a result, many construction companies have gone into administration or made lay offs – by January 2010 construction redundancies during the recession already totalled 375,000 and this figure has been rising ever since.
It’s a bleak time for those still in the industry, with the threat of redundancy hanging over their heads, and a hard time to be job hunting. In human terms, workers need to be prepared to go wherever there is work, and adapt to whatever position they can find – perhaps taking a drop in salary or responsibility in order to stay employed.
Construction companies themselves also need to be ready – ready to respond quickly to signs of optimism, ready to move quickly to win and complete jobs, but without ever compromising on quality. With the inevitable recession fuelled cut-backs and rarity of contracts, buying equipment can be expensive and not cost-effective, so construction companies will increasingly rely on companies who can provide equipment cheaply and quickly. Building firms need to use companies who offer site and lifting equipment hire as an alternative to purchase, fast delivery and expertise in the industry.