SME Construction Sector Employment Rises Again

A PKF Accountants and Business Advisers product story

Edited by the Buildingtalk editorial team Oct 22, 2003

Employment levels highest for nearly three years and business output highest since Q4 2002

Business activity for small and medium-sized businesses in the construction industry rose during the third quarter of 2003 despite a slight drop in the levels of new business compared with the second quarter, according to the 'PKF SME Index', a quarterly survey of 800 SMEs operating in the manufacturing, construction and service sectors.

Output was up to 57.1 in Q3 (where 50.0 is no growth) but new orders were down slightly from 57.1 in Q2 to 56.5.

Whilst the summer is always a traditionally good time for construction projects, there is also evidence from respondents of a buoyant environment for social housing, PFI and new housing development projects.

The increased levels of activity fuelled demand for additional staff and levels of employment reached their highest since Q4 2000 at 54.6.

Nick Winters, partner specialising in growing businesses at PKF, commenting on the Index findings, said: "The construction sector is constantly under the media spotlight as the long-forecasted crash in the housing market fails to materialise.

Although the commercial property market continues to flatline, this quarter's results are concrete evidence that the SME construction sector is still busy, still winning new work and still recruiting new employees." SUMMARY OF DATA FOR SME CONSTRUCTION SECTOR: copies of the PKF SME Index, quarterly performance survey of small and medium sized enterprises are available free by emailing amanda.young@uk.pkf.com.