A majority of the UK's infrastructure contractors are expecting workloads to increase during the next 12 months - but sound a note of caution regarding growth in the UK’s civil engineering sector.

The Civil Engineering Contractors Association latest survey - Workload Trends 2013 Q4 , found that although contractors’ workloads are increasing, the increase in activity has slowed compared to the previous quarter. Despite strong growth in orders in Q3, the survey shows that orders dipped in the final quarter of 2013.

Compared to Q3, when orders increased according to 30% of respondents, on balance, only 3% on balance reported growth in Q4, while one third of respondents reported that orders had actually decreased. For the first time in five quarters, a negative balance (7%) was reported in England.

Tender prices were higher compared to 12 months ago, on balance, for 36% and 31% of firms for new construction work and improvements, and for repair and maintenance work, respectively.

Compared to 12 months ago, 31% of UK firms said workloads have increased, on balance, for a second quarter in Q4, while overall, just 19% of firms reported that workloads had declined. In the water and sewerage sector, 20% of companies reported increasing workloads on balance. On order books by type of work, the report shows that water and sewerage orders were broadly unchanged compared to a year ago.

In England however, 27% of respondents reported that workloads had fallen, compared to 12% in Q3.  In Scotland, 55% of firms reported that workloads were unchanged on a year earlier, but only 8% reported that workloads were lower, leaving a positive overall balance of 29%. In Wales, workloads declined on balance, according to 5% of firms, and 41% in total reported falls.

Despite a reduction in the rate of growth of new orders, down to +3% from +30%, looking ahead, infrastructure contractors are optimistic.

Expected future trends in forward orders improved in the UK for a fourth consecutive quarter. On balance, 58% of firms reported that workloads are expected to increase in the next 12 months, the highest since 2007 Q3. Firms in England lead the way with 61% expecting  workloads to increase. In Wales this figure was 10% and in Scotland, 47% of firms expect workloads to increase.

Compared to 12 months ago, tender prices were higher, on balance, for 36% and 31% of firms for new construction work and improvements, and for repair and maintenance work, respectively. In England, 23% of firms, on balance, reported higher tender prices for new construction work and improvement and 20% for repair and maintenance. In Wales, only 5% of firms, on balance, reported an increase in tender prices for new construction and improvements and 10% for repair and maintenance. In Scotland, on balance, 40% of respondents reported an increase in new construction work and improvement and 23% in repair and maintenance.

Commenting, CECA director of external affairs Alasdair Reisner said:

“It is good news that the infrastructure sector is growing, but today’s report indicates that growth in the sector remains fragile.”

“Last year CECA’s Securing our economy: The case for infrastructure report showed that the country was losing £78 billion each year due to sub-standard infrastructure. We will only be able to close this gap by sustaining recent growth in investment.”

“It is crucial that government and industry work together to ensure we maintain momentum in delivering projects, if Britain is to achieve the shared goal of all political parties: an infrastructure-led recovery.”