Rok plc - General - UK, North West Construction to Grow in 2007

Date: 08 Jan 2007

The North West construction industry is set to continue its growth and expansion in 2007, says Rob Bath, regional leader of North West builder Rok.
Rob predicts all sectors will show a modest upturn in the region. "I believe the construction industry will continue to be buoyant over the next 12 months. Social housing will remain a key factor as housing associations continue to push towards improving social housing to meet the government's Decent Homes target of 2010.

"For customers, rising inflation due to increasing energy prices means that cost control is something which will be even more relevant to the appointment of contractors. The ability to keep to a budget and manage suppliers to do the same will be high on the priorities of many tenders.

"More than ever, the ability to deliver a high quality service, within time and budget requirements of the customer, will be key to the successful procurement of contracts. Awarding of contracts is now taking between six and twelve months and firms need to be flexible in their approach and be prepared to re-evaluate quotes and tender submissions.

"Gone are the days where the job was simply to move on site, complete as quickly as possible, then move onto the next job. Consumers want more than that. Quality, value for money, and job completion within time and budget targets are all expected. They want to be involved with construction partners that fit in with their values and needs and ones that 'go the extra mile'. I believe it is those firms with foresight to cope with the added extras that will be the most successful over the next 12 months."

"Another area which should remain very buoyant is new building as the number of new developments continues to grow in the North West's towns and cities. This also has a knock-on effect with businesses recognising the need to upgrade their own premises in order to be in keeping with their surroundings.

"In 2007, the Government will be called upon to make decisions on at least two proposals which would improve our industry. The recommendations coming out of the Leitch and Barker reviews are important for the future of construction.

"Leitch's proposal that the way the £3 billion budget for skills training should be spent is a decision for industry could mean the British workforce is truly prepared for employment, rather than simply "qualified". The Barker review argues that planning restrictions which hold back our economy should be eased.

"If both of these proposals are acted upon, 2007 will be a time for double celebration in our industry."

Rob Bath, regional leader of North West builder Rok.

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