Skip to main content

UK contractors group CECA says infrastructure workload dips

Britain’s Civil Engineering Contractors Association has warned of declining infrastructure workloads despite indications that the UK is climbing slowly out of the global economic downturn. The slump in infrastructure workloads is a “surprise”, according to a statement by the CECA. The CECA survey of companies that build and maintain the UK’s vital transport and power networks also comes just as the government launched the National Infrastructure Commission to oversee more than €140 billion of spending o
November 11, 2015 Read time: 3 mins
UK infrastructure work slowing down
Britain’s Civil Engineering Contractors Association has warned of declining infrastructure workloads despite indications that the UK is climbing slowly out of the global economic downturn.

The slump in infrastructure workloads is a “surprise”, according to a statement by the 2993 CECA.

The CECA survey of companies that build and maintain the UK’s vital transport and power networks also comes just as the government launched the National Infrastructure Commission to oversee more than €140 billion of spending on infrastructure projects.

The Civil Engineering Contractors Association’s Workload Trends Survey for 2015 Q3 shows that just 7% of firms reported that workloads had increased, the lowest percentage since the second quarter 2013.

It found that declines in workloads were reported in local roads (-24%), motorways and trunk roads (-12%), water and sewerage (-22%) and railways (-18%).

While the rapid growth seen since 2013 cooled slightly in early 2015, this is the first real warning of a potentially more serious slowdown in the sector, said CECA chief executive Alasdair Reisner.

“These results raise concerns for the Government’s growth agenda,” he said. “We have seen this week that a sluggish construction sector is acting as a drag on Britain’s GDP. This is despite the government’s stated aim of investing in infrastructure to drive growth in the economy.

“By now we would expect to see strong growth, particularly in relation to planned investment in road and rail to meet future capacity demand. The fact that workloads are now falling in both these bellwether sectors show that the industry is not yet firing on all cylinders,” said Reisner.

Publication of the CECA survey came on the same day that the government officially launched the National Infrastructure Commission that will review spending on “vital projects" such road, rail and flood defence improvements.

"This is about jobs, growth, living standards and ensuring Britain is fit for the future," said Chancellor George Osborne, the UK’s finance minister.

The CECA welcomed the creation of the Commission and will support its work. “We have long called for a long-term strategy to ensure the UK’s infrastructure truly meets the expectations of business and the general public,” said Reisner.

“The Commission will be able to analyse the strategic opportunities and challenges facing the UK, identify the best way to respond and then ensure projects are delivered on time and on budget.”

For more information on companies in this article

Related Content

  • The new agile world of the construction equipment industry
    June 22, 2015
    while worldwide for 2015 a crystalball would be helpful, in Europe the sector has already listed specific priorities it wants to tackle, and among these are the upcoming emissions regulations (see separate story), external trade and access to foreign markets, and market surveillance.
  • UK’s cause for concern
    June 25, 2012
    Mineral Products Association (MPA) results for the first quarter of 2012 indicate a substantial reduction in sales of aggregates, ready-mixed concrete and asphalt, confirming new GDP figures showing that declining construction activity has triggered the UK’s latest recession. Compared with the same period of 2011, sales volumes of crushed rock and sand and gravel aggregates declined by 13% and 12% respectively in the first three months of 2012, and sales volumes of ready-mixed concrete and asphalt fell by 9
  • Construction industry recovery continues
    June 15, 2016
    The latest report from Europe’s contractor association, the FIEC, shows that the recovery of the construction industry should continue, but at a slower pace. The FIEC reports a 2.4% recovery in activity in the overall EU construction industry in 2015 and forecasts an increase of 2.1% in 2016. “After reaching the bottom in 2013 activity is slowly recovering in the construction industry,” said FIEC Vice-President Jean-Louis Marchand, responsible for economic issues, as he presented FIEC’s annual statistics
  • Global infrastructure spend remains stable but some regions decline
    August 23, 2018
    Spending on inland transport infrastructure – road, rail, waterways - showed minimal change in 2016, staying at 0.7% of GDP, according to data from the OECD. However, the latest data – analysed by the International Transport Forum - also shows a reversal of investment per Gross Domestic Product (GDP) for Australasia, Central and Eastern Europe and Russia. The data is from a report by the Paris-based OECD – Organisation for Economic Co-operation and Development. Growth in inland infrastructure investme