Cuts give construction a bleak future, say experts
THE coalition Government’s austerity budget could leave the construction industry suffering the effects of the recession for another three years, according to leading figures in the sector.
Speaking at a debate in Manchester Gary Blackburn, a director at construction management firm Hill International, said many firms will fail.
“Over the coming years, we are likely to see an increase in insolvencies,” he said. “Jobs are running out and it is leading to businesses reducing their margins to critical levels to remain competitive. I am aware of some companies that are now even running on negative margins.”
The event, titled The Future of UK Construction Post Election, was organised by Hill International and the Chartered Institute of Building (CIOB).
Prof Peter McDermott, a specialist in construction procurement at the University of Salford, said: “Different regions are having their own recessions at different times, but it is likely that across the board, there will be at least three more years of financial difficulty for the construction industry.”
Salford MP Hazel Blears, who chaired the debate, said: “It is a mistake to make these decisions at a time where Europe has such a fragile economy. It is too much, too fast, and we will see people on the dole as a result.”
