Trading conditions in the specialist sector remain tough but there are early signs that things could be starting to improve in the NSCC State of Trade Survey published this month (February).

According to the Survey, 39% of specialist contractors report an increase in enquiries and 36% an increase in orders in the fourth quarter of 2012. The balance of both enquiries and orders (the difference between respondents reporting an increase and those reporting a decrease) has improved significantly to 11% and 2% respectively, compared with -5% and -16% this time last year.

Capacity levels have fallen with just 61% of Specialist Contractors working at over 75% capacity compared with 72% in the previous quarter, which reflects the lack of work available in the industry. The majority of specialist contractors are still looking less than three months ahead and market demand, cost of materials and availability of labour and finance are cited as the most important factors affecting their plans.

The medium- to long-term outlook appears to be more encouraging with 56% of Specialist Contractors anticipating an increase in workload and 44% expecting their businesses to expand over the next 12 months.

Government investment will be crucial to kick-starting growth within the industry and the wider economy and Deputy Prime Minister Nick Clegg recently admitted that there was an urgent need to “mobilise as much public and private capital into infrastructure as possible”. A member of the Association of Interior Specialists (AIS) highlighted the industry’s need for a confidence boost in terms of Government policy when he said that “while the pot of gold [Government investment] is within touching distance, one false move and over the edge you go”.

The full report for the last quarter can be viewed at www.nscc.org.uk/news.