Research reveals that over 80% of 'heavy' manufacturers expect to reduce staff levels

Over half of manufacturers in construction are expected to reduce their headcount over the next year.

According to an industry survey, 61% of 'light' manufacturers expect to reduce headcount, along with 83% of 'heavy' manufacturers.

Overall construction output fell for the first time this year during the third quarter, with 37% of contractors reporting a drop in sales compared to the same quarter one year earlier.

The research from the Construction Confederation and Construction Products Association also shows that over half of construction firms are expecting a fall in turnover over the next quarter as the downturn worsens.

52% of contractors expect workload to drop over the last quarter, according to the latest state of trade survey.

The deepening gloom comes as industry experts predict that the current situation for construction will worsen during 2009, with initial sharp falls in private housing and industrial work being replicated by falls in the commercial sector in 2009 and 2010.