Page 18 - cwuk-2-1

This is a SEO version of cwuk-2-1. Click here to view full version

« Previous Page Table of Contents Next Page »

Page 18 Contractors World - UK & Ireland Vol 2 No 1

Sharp Fall Expected for Construction in 2012

Constructon output is forecast to fall by more than 5% next year and remain fat throughout 2013 according to the latest forecasts, published by the Constructon Products Associaton. It will be 2014 before the industry is expected to see any signifcant signs of recovery, by which tme output will be 12% lower than at its peak in 2007.

Commenting on these forecasts, Michael Ankers (retiring) the Chief Executive of the Construction Products Associaton said: “For the constructon industry to return to growth there needs to be a strong private sector recovery, but this is just not happening. Continuing uncertainty about the future of the euro zone and a lack of consumer confdence in the UK are holding back important investment decisions. As a result the largest area of constructon actvity - private commercial work- is forecast to fall by a further 5% in 2012 and remain at that level in 2013.

“At the same tme the cuts in public sector constructon actvity are really beginning to bite, with constructon work on schools, hospitals, and other non-housing work forecast to fall by 23% compared with 2011. Despite the encouraging announcements on public sector investment on infrastructure projects in the Autumn Statement, capital spending on constructon will stll fall 30% by 2013.

“Although new housing starts in the private sector are set to contnue their slow recovery, in the short term these are more than ofset by the sharp fall in public sector housing. As a result the number of new homes started in 2012 is forecast to be 5000 fewer than this year, and at just 113,000 this is less than half the number of homes needed to accommodate the additonal number of households expected to be created over the next 12 months.” Other key fndings in the Forecasts include:

• Public Sector constructon to fall 18% between 2011 and 2014 • Educaton constructon to fall by one quarter in 2012 • Health constructon to decrease 15% in 2012 • Infrastructure constructon to rise 20% by 2015 • Energy constructon to increase threefold by 2015

Construction Products Association Announces Appointment of New Chief Executive

Dr Diana Montgomery, who is currently the Deputy Chief Executive at the Chemical Industries Association, has been appointed as the new Chief Executive of the Construction Products Associaton. She will take over from Michael Ankers who retres at the Associaton’s AGM in April. Diana graduated from Oxford University with a chemistry degree and was subsequently awarded a Doctor of Philosophy for her work on Environment and Waste Resources at the Imperial College, London. Before joining the CIA in 2006 she was Group Head of Environment at Centrica, and prior to that worked with the Automobile Associaton and Johnson Wax.

Commentng on the appointment, the Associaton’s Chairman, Bill Bolsover, said; ‘I am delighted that we have been able to appoint such a strong candidate to take over as the Associaton’s Chief Executve. Diana brings a wealth of relevant experience to this role and we look forward to her leading the Associaton and taking forward the strategic development programme that we developed last year.’

Diana Montgomery said of her appointment; ‘I am delighted to have this opportunity to lead the Construction Products Associaton and relish the prospect of representng the constructon products community at a tme of great economic challenge and opportunity. Its members have a vital role to play in leading and sustaining our country’s economic recovery and helping the government to deliver its low carbon strategy.’

Construction Output Remains Subdued

In a further statement issued mid-January, the Constructon Products Associaton said that latest fgures from ONS for November Constructon Output show no change from the low levels recorded in October. However, output is 1.6 per cent lower than in November 2010 when the industry was severely afected by bad weather.

Commenting on these figures, Noble Francis, Construction Products Association Economics Director said: ‘Constructon output remains extremely subdued having fallen for three of the previous four months and output in the fourth quarter of the year is now likely to fall, mirroring the recent disappointng economic news from the manufacturing sector.

‘The recovery in private sector constructon is stll very sluggish and with the antcipated sharp falls in public spending

Construction News - Economy - Business - Regulation

Page 18 - cwuk-2-1

This is a SEO version of cwuk-2-1. Click here to view full version

« Previous Page Table of Contents Next Page »