November 2009
ARE WE AT THE BOTTOM?
While few in the mortar supply industry claim to have seen ‘green shoots’ when asked about the economy, there does seem to be feeling that the fall in demand has at least bottomed out.
But is that the view elsewhere?
Director of economics and public affairs at the Mineral Products Association, Jerry McLaughlin , can see some light at the end of the tunnel:
" The prospects for mortar are one of the few positive trends in the sector. From a very low point, the housing market and housing starts are now improving, there is an increasing focus on building houses rather than flats, and government is actively supporting the sector. In the longer term the market will be underpinned by demand arising from rising population and household levels. Although economic and financial sector constraints suggest no prospects of a boom in housing activty, the trends are in the right direction."
Editor of Housebuilder, Ben Roskrow, also felt we are coming out of recession: ‘But as to whether this means better times ahead in the short term for business is a more complex question’ he said. ‘In my sector of interest, house building, there are clear signs of recovery with visitor numbers up, reservations up, cancellations down and new sites opening. However this recovery is uncertain and fragile and cannot be relied on as a clear indicator of better times ahead. Rising unemployment, a difficult mortgage market, the artificial impact on the market of HomeBuy Direct and Kickstart and a looming election all suggest the road ahead will be bumpy. But hey, at least we are not still in the nightmare of 12 months ago! And in the long run, we desperately need housing – so hang on tight.’
Even if prospects for business ahead look a little brighter, MIA members have already begun to voice their fears about industry job losses. One reports that a bricklaying contractor in the Midlands is 65 per cent down on the number of bricklayers employed compared to a year ago. This can only be damaging to any recovery because many of those former brickies may well have found other jobs, again leaving the construction and building industries short of trained craftsmen.
‘Even in these tough economic times,’ says MIA marketing committee chairman, Dave Stewart, ‘we must try and protect industry skills otherwise recovery will be even more difficult to achieve.’
Further information or access to any photographs contact Brian James at Brian.James@mineralproducts.org or call 020 7963 8000.
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