The Civil Engineering Contractors Association (CECA) is urging the government to take rapid action to prevent a sudden crash in workloads forcing a a double-dip recession in the infrastructure sector.
Results from CECA’s 2012 Q2 Workload Trends Survey, published today, show that a fledgling recovery in the sector earlier this year has been “stamped out”, as output in the sector fell back into the red.
The survey shows that 20% more firms reported declining activity than those reporting gains, sending workloads into negative territory after two previous quarters of growth.
The two most important sectors for CECA member companies – roads and preliminary works – both saw alarming declines in activity. Workload balances for motorways and trunk roads fell by 53% compared with a year ago, while the equivalent figure for local roads declined by 42% in the same period.
“The government has rightly placed infrastructure provision at the centre of its growth strategy, said CECA director of external affairs Alasdair Reisner. ” These alarming figures show that this strategy has stalled.