Thursday, July 26, 2012

The Effects Of Recession Within The UK Construction Industry

According to the Construction Products Association (CPA), the UK construction industry has shrunk in 2008 and 2009, marking the greatest recession over the past 30 years. In 2011, the construction industry grew by 8.4pc according to the Office for National Statistics (ONS), however it may not fully recover until 2014.

Recession is common in many countries, however longer recessions may impact a country in variety of negative ways, especially on the side of construction workers whose income is reliant with the construction work. The recession in the UK construction industry have impacted the country in four major ways.

- The new orders received directly from private sectors fell by over 16% in the final quarter
- Orders for new building contracts have been slowed down
- The new orders feel by over 23% compared to the equivalent period in 2010
- Only the private industrial sector have experienced growth between the first two quarters of the year

Although the government holds a major responsibility in reviving the construction industry, the people embraced therein also plays a significant role in maintaining the imperative operations in the company or retain jobs despite the very tough times. Whether you own a company or holds a senior position, it is important to take every precautionary measure to ensure that your organization makes it through the recession with the fewest pockmarks possible.

Hold on to your employees - Promote positive actions to prevent your employees from backing off the job, such as increasing communication, investing on trainings, and involving your employees with the decision-making. While employees may foresee lay-offs during recessions, avoid not telling the truth at all. Hold meetings to let them know of the current situation and be open for comments and suggestions to keep the company's operations well and good. Continue to plan for the future as recessions cannot be permanent.

Avoid lay-offs altogether - When budget gets tight, try to cut everything that is non-essential, however avoid laying-off employees altogether. If your business activities have been reduce in effect of the circumstances that have gone beyond control, do not hesitate to seek help from work-sharing programs of the federal government. Such actions will help you reduce salary cost even without laying-off employees.

Make lay-off as last resort - Laying-off employees is one of the hardest decisions a manager can ever do. However when worst comes to worst, always make this as the very last resort. Should you conduct a lay-off, make sure that you do it in a proper way. Thus, before laying-off employees, plan it carefully, know the laws, and be prepared of any consequence. Although an employee is already laid-off, it is still a must that you treat him or her with full respect and dignity. This is an important asset that will keep employees high spirited despite the recession.


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Louise Collins writes articles for http://www.plumbingcareer.co.uk/ on the UK construction industry. You should check them out if you are interested in trying to change your career and get into this industry as a plumber.


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