Richard Threlfall, KPMG’s Head of Infrastructure, Building and Construction, comments on the UK construction industry output data for Q1, 2013, release by the ONS today:
“According to the ONS construction output in the first quarter of 2013 fell by 6.5% compared with the first quarter of the previous year. This is certainly worse than the industry expected and will send shudders down the spine of a Government that is struggling to deliver growth.
“The bad news for the sector has been piling up quarter after quarter but there is nothing quite as dreadful as waking up to the headline that the industry’s output is now at a lower level than in 1998. Businesses that are thriving in this market are performing miracles.
“Recent analysis by KPMG showed that average margins in the industry increased until 2010 but have been sliding since. The cash position in the industry has worsened significantly over recent months and credit remains very hard to obtain. The only piece of positive news is a drop in the number of insolvencies in the industry, but cynics might argue that so many businesses have gone bust over the last few years it is not surprising that the rate is slowing.
“The UK needs £400billion to be invested in its infrastructure over the next 10 years; it needs a massive increase in new housing and it needs the schools and healthcare facilities to support those new communities. The gulf between these needs and the reality of an industry going through endless challenges appears today ever more stark.”
Katrin Boettger, Senior PR Manager
Tel: +44 207 896 4232 / 0782 4475168
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