Stalled Construction Output Prompts Call to Cut Procurement Costs

Commenting on the latest figures on output from the UK construction sector, published today (Friday the 11^th November) by the Office of National Statistics, Scottish Building Federation Chief Executive Michael Levack has raised concerns about worsening performance across key sectors of the industry.  He argues that the new figures reinforce the case for increased capital investment and a radical streamlining of public procurement processes.

Mr. Levack said, “Overall, these figures show the value of industry output having dropped modestly by 0.2% or £44 million in the third quarter of this year.  However, behind the headline figure, we can see bigger falls in output from the housing sector – down 4% or £183 million, including an 8.2% fall in the value of public sector housebuilding – and from the private industrial sector, where output has dropped by 8.4%.

“These figures only re-emphasise just how fragile the industry’s recovery remains.  The negative impacts of a stagnating private sector will only intensify as public investment in the industry continues to fall away.  Government needs to prioritise additional funds for capital investment and – just as importantly – to make far more efficient use of what funding is already in place.  Public procurement costs that run into six or even seven figures are not an efficient use of public money – but it’s something our members are encountering with alarming regularity.

“I call on Government at all levels to make capital investment a top priority to help kick-start construction and the wider economy, and to take immediate action to streamline our procurement system.”

ENDS

Notes to Editors

1. Output figures for the UK construction industry for the third quarter of 2011 were published today (11^th November) by the Office of National Statistics: http://www.ons.gov.uk/ons/dcp171778_241872.pdf

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