New Home Owners And Snagging Forum

Advice on buying a brand new home => House Builders => Topic started by: Banjo on June 12, 2011, 12:58:38 pm

Title: The Construction Industry suffering during the downturn
Post by: Banjo on June 12, 2011, 12:58:38 pm

The Construction Industry is facing tough times as a result of the public spending cuts, rising material costs
and a shortage of affordable mortgages and finance for larger construction projects.

Raw material prices have risen sharply over the last year with copper now up 40%, iron ore 65%, oil (used in asphalt and tarmac) up 60% and timber products up 30%.

New orders are reported to be down 7% in the first three months of this year, public sector contracts down nearly 20% compared to the same period last year.
With the construction industry accounting for 6% of the economy, government growth forecasts may now look optimistic.

Title: Re: The Construction Industry suffering during the downturn
Post by: Philofacts on June 12, 2011, 01:04:17 pm

And Construction companies and their sub contractors, are on fixed price contracts
so all increases in material and fuel costs come out of profits.

Title: Re: The Construction Industry suffering during the downturn
Post by: Albert on June 13, 2011, 03:18:16 pm

At least it will give them another excuse to make more managers redundant!