Infrastructure output has risen by 4.2% in the last quarter of 2012 compared to previous quarter with overall construction increasing slightly 0.9%, according to Office of National Statistic figures out today.
But instructure output is down 6.1% compared to the final quarter of 2011 with overall construction down a further 9.3% during the same period.
“After such a long period of contraction, the industry is changing. As the big players are being forced to pitch for smaller projects, those in the “squeezed middle” are having to slash margins to negligible levels – and in the most extreme cases, some firms are pitching for work at below cost, simply to keep cash-flow coming in,” said Turner & Townsend UK managing director Steve McGuckin.
“Such desperate measures are clearly unsustainable, and the industry as a whole is having to adapt to a tough environment which is by no means over.”
The ONS said increases in infrastructure output may have been offset by a fall in new public non-housing work and private housing repair and maintenance.