Yorkshire’s construction sector sees decline

CONSTRUCTION in Yorkshire suffered an 8% fall in output in 2012, figures show.

The region’s construction industry will see a decline in output of 0.9% per year between now and 2017, according to the Construction Skills Network (CSN) report by training organisation CITB-ConstructionSkills.

Public non-housing will suffer the most with declines of 10% per year during the period, while infrastructure will be the next hardest hit, with a predicted 5.1% rate of annual decline.

Sign up to our Business newsletter

Sign up to our Business newsletter

Construction employment levels in the region will also shrink, at a rate of 1.6% each year between now and 2017.

Although the figures show decline for the region’s construction industry, there are some predicted growth areas. Private housing in the region is expected to see an increase of 3.8% and industrial work an increase of 1.5%.

Steve Housden, sector strategy manager for CITB-ConstructionSkills in Yorkshire and the Humber, said: “Construction found itself at the heart of a ‘perfect storm’ in 2012 - hit hard by a combination of public sector spending cuts and a lack of investment in the private sector. Client and consumer confidence are low and are keeping growth levels down.

“Unfortunately all of these factors have had severe consequences for the construction industry in Yorkshire & the Humber, with the CSN predicting further contractions in growth and employment over the next five years.

“With this in mind, we are doing all we can to work with construction employers to add value during these tough times, as this will hopefully lead to further growth on a local and national level.

“Construction is a vital engine of UK growth. While construction struggles for its survival, it’s impossible to see how the UK economy can generate significant growth.”