Contraction ends, growth returns for UK construction sector

Measures introduced during the Chancellor’s Budget in March 2013 are thought to have helped the construction sector to recover, with the Help to Buy Scheme leading to an increased number of first time home sales.

With the property market slowly recovering, demand for new houses has spurred the construction sector into action, putting an end to a dire six months of successive contractions.

The Markit/CIPS Construction Purchasing Managers' Index rose to 50.8 over the course of last month - up from the figure of 49.4 posted in April. Any number above 50 can be seen as representing growth, whereas a figure below 50 would mean contraction. Early signs ahead of the looming month end have indicated that June’s growth will reflect this improving trend.

There are concerns, however, that the domestic construction industry is over-reliant on residential building work, with the upswing in the sector’s fortunes corresponding with an untenable spike in homebuying.

Integrity Software’s Managing Director Justin Moule said: ‘It’s encouraging to see the construction sector registering growth at last, but it’s important that we don’t get ahead of ourselves.’

‘One swallow does not make a summer, and it’s safe to say that the industry isn’t out of the woods yet. It’s likely that UK construction firms will continue to have to tighten their belts as economic recovery slowly progresses.’

To battle: Construction-specific accounting software vs. a generic approach

For many firms, a generic piece of accounting software will suffice. The matter of tracking incomings and outgoings is a simple procedure; products and services have a set value and cost, employees are consistent from one month to the next and it is easier to estimate the end-cost of a project on commencement. Sadly, the same cannot be said for the world of construction.

Construction crises: your onerous overheads

In an industry as competitive as the construction sector, it’s important to keep expenses low so that you’re able to compete on price as well as quality. Of course, minimising expenses is often more easily said than done, particularly when managing other vital aspects of a firm’s accounts. We’ve picked out five of the most onerous overheads confronting successful modern construction firms – could you save your company thousands of pounds every year by addressing these expenses?

Construction industry recovery adds to employment prospects

Companies in the construction industry have indicated that they are likely to be taking on more staff in the coming months due to rising numbers of building developments in London and other regions.