There were positive signs for the construction sector as there was an increase in activity across the entire sector; this is the first time this has happened since last August, this is according to the latest monthly Purchasing Managers’ Index from the Chartered Institute of Purchasing Supply (CIPS).

The index, compiled by research firm Markit, rose to 53.7, up from 49.1 in December, on a scale where any figure over 50 marks growth.

The weather conditions at the start of the year helped to boost construction work, while there were also gains in new business, CIPS said. Despite rises in both new orders and activity unfortunately employment nonetheless fell again.

Civil engineering was the biggest benefactor, having seen a slight reduction in activity during December. Commercial based construction activity meanwhile extended its sequence of growth to eleven months. There was a slight increase of house building in January to end a four-month period of contraction.

Optimism regarding companies’ activity levels in 12 months time rose to an eight-month high, and has improved substantially since hitting a low last September.

David Noble, chief executive at CIPS, said: “This is good news for the Government as the construction sector seems to have bounced back, suggesting it was the widespread chaos caused by the snow that had such an impact and hampered growth in December.”

But despite the growth of activity, an “air of caution” persists amongst construction companies as employment levels continue to fall, Noble warned.

“Some companies that are doing well are hiring but many more companies are continuing to adjust to lower workloads and deferral of projects,” he said. “Until growth becomes sustained it is unlikely we will see employment levels rise substantially and consistently.”

Source: Buiding.co.uk 2/2/2011

The third part of the National Federation of Builders article about sustainability, UK construction and the current economic situation, is all about training and skills.  Have a read, and let us here at BuilderScrap know what you think.
The construction industry is facing a skills shortage on two fronts.  Firstly, the industry is losing workers – 109,000 in 2008 through redundancies as the industry suffered its worst decline in 30 years.  With demand falling and over-capacity, there is an increased likelihood of further job losses.  As the industry loses these skills and as those workers retrain for other industries, it will become more difficult to restore those skills when the market recovers, reducing the industry’s ability to build for the economic upturn and meet the long term demands of the infrastructure building programme.  Secondly, there is a shortage of apprentices, with 3,500 apprentices losing their jobs in the six months to March 2009.  Of those 3,500 only 700 have found new employment.  There is hope that the outward flow of so many apprentices will be stemmed by the National Apprenticeship Service which aims to help the industry meet the governments target of doubling the number of construction apprentices to 14,000 by 2012, or by the Apprentice Matching Service (AMS) from Construction skills which find alternative placements for those who have been made redundant before the end of their training.  The government’s targets, set in more stable economic times were designed to stretch the industry.  For many members, the current harsh economic reality makes taking on apprentices unrealistic this year.  However, it is still possible to train your existing workforce at no net cost, using the levy and grant system of Construction Skills. Making sure your skills are up to date puts you in the best competitive position for the upturn, when it comes.