Concerns of a slowdown in infrastructure delivery and weak prospects going forward have been voiced by two major surveys.
Just seven percent of companies contacted by the Civil Engineering Contractors Association report increased workloads during the third quarter of this year, the lowest number for more than two years.
A separate study by the Confederation of British Industry and AECOM says that nearly two thirds of businesses are concerned with the pace of progress on infrastructure delivery. In addition more than half believe they will not see necessary infrastructure upgrades take place in the next five years.
The Civil Engineering Contractors Association’s workload trends survey for quarter three also found declines in local roads activity (down 24%), motorways and truck roads (down 12%) and railways (down 18%).
It says that a cooling of rapid growth seen in the sector since 2013 offers the first real warning of a more serious slowdown. CECA chief executive Alasdair Reisner said: “These results raise concerns for the Government’s growth agenda.
“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.
“We hope for stronger growth in the months to come as planned Government investment bears fruit,” he added.
The Confederation of British Industry / AECOM report pointed out that there are £411Bn of infrastructure upgrades which are “fundamental to the UK’s future” and need to be delivered.
Of the firms surveyed, 56% wanted to see further increases in spending on roads and almost three quarters are open to the idea of road charging. On railways more than half of firms support High Speed 2 – but 92% say their support would be boosted with a clearer picture of how the project sits in a longer term plan for the UK railways.
Over 90% said a new airport runway in the South East was important and less than half of businesses described connections to emerging markets as fit for purpose.
CBI director general John Cridland said: “The arteries of modern Britain are working overtime. Whether it’s our creaking railways, clogged roads, crowded runways or our digital links and the energy to power them struggling to keep up, businesses now want the Government to deliver the large scale upgrades that it has made ambitious strides towards. Delivery of key projects must be the crowning achievement of this Parliament.”
AECOM’s European civil infrastructure chief executive Richard Robinson added: “Political procrastination over infrastructure threatens economic growth and jeopardises investment. Industry needs the Government to maintain a clear and consistent vision and to have the courage to make politically charged decisions when they are in the long term interests of the country. Delays and never ending reviews of vital infrastructure stall progress and help nobody.”
{{item.AuthorName}} {{item.AuthorName}} says on {{item.DateFormattedString}}: