Only 32% of building contractors are operating at 90% capacity or greater, according to a new survey.
The Construction Products Association (CPA)/Construction Confederation survey, published today, said 80% of builders were operating at near capacity 18 months ago.
The survey also found that 77% of contractors’ order books in the industrial, private housing and commercial sectors had shrunk in the last quarter.
“The fall in demand has had a negative impact upon tender prices and, when combined with further increases in costs, has led to a sharp fall in profit margins,” said Marcus Adamson, executive chairman of the Construction Confederation.
Some 50% of lightside construction product manufacturers and 41% of heavyside companies are operating at below 60% capacity.
The CPA predicts the construction sector as a whole will decline 9% this year, the sharpest decline in 30 years.
