Construction Firms Upbeat About Future Prospects But Fears Grow Over Rising Labour Costs

Over Two Thirds Expect Prospects To Improve During Next 12 Months

01.09.2014

David Shirt, Press Officer | 0161 838 3094

Almost 70% of UK construction firms are more optimistic about their future prospects than they were 12 months ago, says a survey of over 600 companies.
 
The report by national law firm Irwin Mitchell did highlight however growing concerns amongst senior decision makers about the cost of labour - with 61% of construction firms expecting wages to rise during the rest of 2014.

According to Irwin Mitchell, this is being caused partly by a skills shortage in the sector. The law firm also highlights the growing issue faced by main contractors who are seeing tender return prices increasing due to subcontractor price inflation following a long period of flat prices. 
 
The survey also revealed some significant differences in optimism in different parts of the UK with the lowest level of confidence recorded in Wales at 62%. The figure for Northern Ireland stood at 75% whilst in Scotland the figure stood at 64%.
 
Within England, levels of business confidence were highest in the East Midlands (84.6%) and lowest in the North West (64.7%).

David Parton, Construction Partner at Irwin Mitchell, said:

Steven Bate, Partner at Irwin Mitchell and specialist in construction litigation, added: