In contrast to recent surveys, total workloads are reported to have fallen both at the headline level and, more significantly, across each individual sector. This is the first time this has occurred since the survey was launched in the early part of 2012. The aggregate workloads net balance experienced a steep decline from a positive reading of 25 down to -27 over the quarter.
Respondents within the public housing category were most downbeat, although this trend appears to have been mirrored throughout the majority of sectors. Private commercial and infrastructure may be classed as slight exceptions, but still recorded negative net balances.
Despite this, expectations for the coming year remain encouraging. Workloads are anticipated to improve further with respondents marginally more upbeat than in the previous quarter. Both employment and profit margins are predicted to continue rising, although readings are not quite as strong as in the preceding three month period. On average, construction workloads are projected to grow around 6% over the next 12 months. On the same basis, employment levels and profit margins are anticipated to rise by approximately 5% and 7% respectively.
Insufficient demand is now being cited as the joint largest factor limiting activity, with 69% of respondents highlighting the issue. The proportion of contributors stating shortage of labour to be of concern fell, whilst financial constraints were observed to be a slightly greater problem in this quarter's survey. Planning and regulation continues to be an obstacle, as does competition.
The survey also indicates that skill shortages were down across all areas, compared to last quarter, but overall they are still significant with about 40% of respondents expressing a concern in this area.
Survey responses suggest there is likely to be little overall change to sustainability budget allocation over the next 12 months. With regards to Building information modelling (BIM) use, 25% of contributors stated that their company has used BIM in the last quarter. Design and cost management were the only areas in which BIM was reportedly implemented.
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