North East takes brunt of downturn

Published:  15 February, 2011

GATESHEAD: Construction companies in the North East can expect an even tougher year ahead says the Civil Engineering Contractors Association.

The latest casualty of the down turn is groundworks contractor, Barton Civil Engineering that has been placed in administration. David Willis of Stockton on Tees-based BWC Business Solutions is handling the administration.

Douglas Kell, director of the Civil Engineering Contractors Association (North East), said his organisation's recent checks indicate the North East as still hardest hit, along with Wales. It is a "trend that regrettably looks like continuing during 2011," he said.

The government's "purported" support for SMEs and promotion of growth in the local economy has not materialised, he added.

Michael Henning, North East spokesman for the Royal Institution of Chartered Surveyors, said: "The acute shortage of new construction work in the region is seriously impacting across the sector.

"Costs of running a business are rising, while a cut-throat market is driving down fees and profit margins," he said.

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