West Midlands construction sector turning a corner – RICS survey

THE outlook for the West Midlands construction sector is improving, with workloads remaining healthy.

Some 62% of surveyors in the region anticipate activity will rise over the next four months, says the latest Royal Institution of Chartered Surveyors (RICS) construction market survey.

Since the start of the downturn in 2007, the amount of construction going ahead across the West Midlands has dropped considerably and the sector has suffered substantially as a result.

Since the start of 2013, however, activity has slowly begun to pick up. During the second quarter of the year a net balance of 24% more surveyors in the region reported rises in workloads.

Although activity is not back to what it was pre-recession, this positive rise in workloads is one of the highest in the country, with only London and the South East reporting a bigger increase in activity. This could suggest that the worst could now be over for the sector in the region.

Among the industries in the West Midlands to see increased construction activity are industrial, infrastructure and public non-housing schemes.

Adrian Aston, director of property and construction consultancy Wakemans in Birmingham, said: “The required planning and regulatory process, together with on-going funding constraints, continue to be the major factors in preventing or delaying construction work across the region.

“But on the whole, the construction sector in the West Midlands is the most optimistic it has been in a number of years. Hopefully we are now on the long road to recovery.”

Simon Rubinsohn, RICS chief economist, said: “It is clearly good news that the amount of construction taking place across the West Midlands seems to have turned a corner. But this modest improvement comes after a long period of contraction and many businesses in the sector are still struggling to keep their heads above water.

“Securing finance for development is still a big challenge and, despite the Government’s attempt to revamp the planning system, the feedback we are getting suggests that this issue also remains a major obstacle to getting projects under way.”