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Plant hire receives boost as construction industry comes out of recession

Plant hire receives boost as construction industry comes out of recession

2009-12-09 -

Government figures indicate that the construction industry is no longer in recession after a boost in public sector work. Figures from the Office of National Statistics show construction ouput rose by two percent in the third quarter of 2009 compared with the previous year, with quarter on quarter growth signalling the end of recession for the industry.


As reported in Construction News , while going into recession is technically defined as two negative consecutive quarters of growth, the end of a recession is recorded at the time of the first growth quarter-on-quarter. That happened for the third quarter of 2009, with a two percent spike in growth.

But the figures still show the industry’s output of £25 billion last quarter is 9 per cent down on Q3 2008’s figure of £27.3 billion. Repair and maintenance work totalled £11.4 billion, up 10 per cent on Q2’s £10.3 billion. However, that was off set by a fall in new work of 4 per cent from £14.2 billion to £13.6 billion.

The biggest growth sectors were public sector non-housing repair and maintenance work, up 26 per cent, and public sector new housing which was up 14 per cent. By contrast the biggest faller was private sector new commercial work, down 11 per cent.

Glenigan economics director Allan Wilen said: "The overall rise in third quarter output will provide some cheer for the battered construction industry.

“While the main source of growth has been in repair and maintenance activity, the figures also indicate that the rise Glenigan has seen in new government project starts since April is feeding through to the industry’s output.

“However, private sector new work has continued to weaken and overall industry output is still 9 per cent down on a year ago.

“Furthermore the current rise in repair and maintenance work may also prove short-lived. In particular public sector repair and maintenance work will come under increased budgetary pressure over the next year.”

Royal Institute of Chartered Surveyors chief economist Simon Rubinsohn added: “The 2 per cent gain in the headline output number in the third quarter masks a significant divergence between new build and repair and maintenance work.

“While output of the former continues to slip, the latter has now increased for two consecutive quarters.”

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eRentalNews says:

While there is still much uncertainty in the industry, these figures from the ONS will provide a welcome boost for all sectors of the rental economy that provide equipment and tools to builiding sites.

A wide range of tool and plant hire options are available on erento, including

Mini Diggers , Forklifts , Dumpers , Scissor Lifts , Power Floats and Skips . For the full range see Construction Machines and Building Site hire .

 



from Michael Hall in   |  2009-12-09
tags from this article: Construction News, plant hire, tool hire, building site equipment hire