Contractor demand to rise in ailing construction sector?

Demand for contractors in the construction sector could be set to rise as the industry is facing difficulties in the wake of the recession.

During December 2011, commercial development fell at the fastest rate recorded since February 2009, the latest research from Savills revealed. In fact, it was the sixth consecutive month during which the industry contracted.

Furthermore, there is a pessimistic outlook from developers for the first quarter of the new year. Michael Pillow, head of building consultancy at Savills, commented: “Refurbishment volumes remain broadly flat, against a background of sharp falls in new development activity.

"Lower-risk and more fundable projects are going to remain most popular until economic growth becomes more dependable."

Such conditions could prompt businesses to take on contractors rather than permanent employees in order to have the necessary staff to complete current work loads without the need to commit to a permanent member of staff without knowing what is around the corner.

This would save companies the problem of having a large number of staff on their books indefinitely when work flow is slow.