What’s more the construction industry was a major employer of graduates, with a third of new positions being offered to university leavers. Unfortunately these figures were estimated during a time of financial stability and a rising market. Now with the credit crunch the construction industry is being threatened just as much, if not more, than other market sectors.
Construction jobs cover a vast area of the job market including such diverse building services as: infrastructure repair and maintenance; public and private house building; and the building of factories, hospitals and schools. All of these areas are threatened. Perhaps the worse hit is the residential house building market as falling house prices are meaning that people are pulling out of property buying altogether. staircase supplier
At the beginning of July 2008 The Times Online told how Barrett Developments, one of the UK’s lead construction companies, made around 1000 redundant in just one day. Over two days the redundancy figure hit a staggering 2500 people. As well as all of these job cuts the company’s shares have also dropped by 97% since a peak in February 2007. Regional offices are being merged or closed entirely. Similar trends are being echoed throughout the market sector.
All of these factors add up to an unprecedented drop in the sector as mortgages become more difficult to secure and as the economy weakens generally. Not only are the larger companies, such as Barrett Developments being hit, so are mid-level companies and smaller companies. In fact the mid-range and small organizations are in much more risk of folding entirely.
Also like the swinging ball executive toy the cuts in house building are affecting all the other jobs within the construction industry. Managerial staff, and desk-based staff are being affected along with builders and other ground-level workers.
Similar trends are being seen in the USA and practically all countries around the world. One of the worst hit is Ireland and the situation there could be seen as a precursor of what is going to happen in the UK. It is now being commonly agreed that a recession is approaching, although the severity of this recession is being hotly debated. Within the construction sector the length of this recession is being estimated at one to three years depending on which expert you ask.