Construction Industry Growth

The construction sector expanded at its fastest pace for seven months in August, despite supply shortages holding back growth.

The rapid pace of growth is causing supply problems, with the availability of both materials and sub-contractors dropping at their fastest rate since monitored in 1997. There has also been a record rise in the rates charged by sub-contractors.

"The sector is struggling to find enough skilled tradesmen to keep pace with new work and the labour market will continue to put pressure on costs until the next wave of apprentices begin to enter the jobs market," said David Noble, group chief executive at the Chartered Institute of Purchasing & Supply.

The sector, which was hit hard in the financial crisis, began to grow strongly last year, helped by low interest rates and government programmes aimed at boosting demand. Growth in the sector in August was based on residential housing, commercial building and civil engineering activity all seeing strong increases.

Following the recent Onshore Intermediaries legislation, the common CIS method of payment for construction contractors is largely a thing of the past. Liquidity Group has compliant solutions in place to help your business retain wide profit margins through 100% saving of Employers NI and payroll processing overheads. The contractor still enjoys the benefits of work-related expenses, helping them achieve an increased NET pay, with reliable payments and clearly legible payslips.

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