Building Industry 'Runing At 50% Capacity'

The only certified employers organisation for the construction industry based in Northern Ireland has revealed worrying news on the state of the regional industry as the New Year progresses.

The Construction Employers Federation (CEF) has this week published its State of Trade results for the third quarter of 2010.

The results showed that over the previous 12 months every second construction company was working at half capacity or less.

The outlook for the year ahead is ominous as 60% of respondents anticipate a lower workload in 2011.

John Armstrong, CEF Managing Director said: "The construction industry has experienced extremely difficult trading conditions in Northern Ireland for the last three years.

"The severe downturn in construction has had an enormous knock on effect on the wider economy. It is highly concerning to everyone interested in growing the local economy that a majority of construction companies are preparing for further reductions in workload during 2011.


"The need for investment in our infrastructure could not be clearer. Setting aside the construction jobs it would create and the direct economic multiplier, investment in our infrastructure benefits every citizen and enables long term economic growth," he said.

"Over the Christmas period thousands of householders felt the repercussions of years of underinvestment in our water infrastructure. That sector is not alone. It is only a matter of time before the underinvestment in our roads, schools and hospitals is fully exposed."

He also noted that the survey showed that there has been no discernable improvement in the construction industry's experience of the planning system.

Since 2006 companies have consistently reported that on average it takes 18 months for a planning application to complete the process from submission to final decision. However there is a wide range of responses to this question.

Commenting on the findings Mr Armstrong said: "Improving the planning system must remain a top priority for the Executive. An efficient and effective planning system will boost our economy.

"Whilst much work has been done by Planning Service it does not appear to have resulted in a consistent improvement in the turnaround of planning applications.

"The Federation continues to call for a reduction in the number of consultees and the introduction of a time limit for those consultees to respond," he concluded.

(BMcC/GK)