Although trading conditions in the specialist sector remain tough, there are some early signs of improvement, according to the latest NSCC (National Specialist Contractors Council) State of Trade Survey for the fourth quarter 2012.
NSCC found that 39% of specialist contractors reported an increase in enquiries and 36% an increase in orders in the fourth quarter of 2012. The balance of both enquiries and orders, which is the difference between respondents reporting an increase and those reporting a decrease, has improved significantly to 11% and 2% respectively, compared to -5% and -16% at this time last year.

Just 61% of specialist contractors reported working at more than 75% capacity, compared to 72% in the previous quarter, reflecting the lack of work available in the industry. Most specialist contractors are still looking less than three months ahead and market demand, cost of materials and availability of labour and finance are cited as the most important factors affecting their plans, NSCC reports.

However, according to the survey, the medium to long term outlook appears more encouraging, with 56% of specialist contractors anticipating an increase in workload and 44% expecting their businesses to expand over the next 12 months. Government investment will be crucial to kick-starting growth within the industry and the wider economy.

NSCC president, Kevin Louch, who has been appointed to the Construction Industrial Strategy Advisory Council (CISAC) to help produce a strategy to drive innovation and growth within the industry, said: 'The Government has recognised that construction has a direct impact on the UK economy and growth can only be realised with investment in new projects, innovation and skills. The new CISAC will engage with the supply chain to develop a vision for the industry to become world class. By doing so, it will create the opportunity to make the industry the career of choice for future generations.'

NSCC contributes its findings to the State of Trade Survey published by the Construction Products Association, enabling the experiences of the specialist sector to be compared with the wider industry.