A report from the Royal Institution of Chartered Surveyors (RICS) found 24% of firms indicating a rise in workloads in the first three months of 2001. This compares with 19% of firms in the last quarter of 2000.
Milan Khatri, chief economist at RICS, said: "Activity in the construction industry is picking up after a lull in the second half of 2000 caused by public transport difficulties, flooding and the fuel crisis.
"The biggest turnaround has been in private housebuilding, which suffered in the second half of last year as the housing market slowed." The biggest winners in Scotland were those involved in the commercial and housing sectors. The RICS also predicts good near-term prospects.
Workloads in Wales are also on the up. Again private housing is up, but so is the industrial sector. Not such good news in Northern Ireland, where dips in both those markets mean that chartered surveyors reported less work for the first time in two years.
Overall, most progress has been in the private housing market. RICS claims that the sector has seen its most rapid growth since spring 1999. A shortage of available office space led to a buoyant commercial sector, but the current slowdown in the economy may result in a cooling off in demand.
The RICS noted a modest slowdown in the industrial sector as warehouse and distribution centre construction declined, perhaps due to closures in the e-commerce sector.
The Institution also warned about the skills shortages hitting the industry and wage pressure.
Source
Electrical and Mechanical Contractor
