Construction industry needs to further ‘brace itself’ says CPA!

According to NHIC Member the Construction Products Association (CPA), the prospects for a recovery in construction output has weakened still further. The CPA was commenting on the latest new orders figures from the Office of National Statics for the third quarter which showed a fall of more than 5% compared with the same quarter last year.

New orders in the first nine months of 2011 were 14% lower than in the same period last year.

The CPA’s chief executive, Michael Ankers, said: “Although new orders have improved since the previous quarter, this is still the lowest figure for Q3 since 1980. As expected the fall is sharpest in public sector construction – education, health and social housing – and although there is some pick up in orders for private sector commercial work, this is heavily focused in London and the south east and is not strong enough to compensate for the sharp decline in orders for public sector work.

“The autumn statement brought the prospect of increased investment in infrastructure but the government’s figures show that this will not have any significant impact until 2013 at the earliest. As a result, and in the light of today’s new orders figures, the industry needs to brace itself for an even sharper fall in output in 2012 than that already anticipated.’

CPA represents the UK’s manufacturers and suppliers of construction products, components and fittings. It acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of £50bn and accounts for 40% of total construction output.

More information: www.constructionproducts.org.uk