Contractor Calculator recently published their monthly market report. The report this month highlights developments in the contractor marketplace, and the potential impact of these developments. Although it appears the demand for IT contractors in increasing, demand has fallen for engineers and telecoms contractors.
The Monster Employment Index showed demand for IT workers increased by 3%. Interim management contractors in the marketing, management and consulting sectors may also see an increase in activity, with demand for marketing and sales professionals up by 6%. However, contractors in telecoms, construction and engineering have good cause to remain concerned, as the index shows there has been a substantial decrease in demand for their skills.
The report also found that the UK business failure rate has fallen to its lowest level since September, 2008. Rolf Hickman, Managing director of Experian firm pH however, warns that every business must continue to be cautious in its dealings with other businesses.
The results of Experian’s new Insolvency and Distress Index show that, out of a total number of 1,796 business failures last month, those in top contracting sectors included:
- Oil – 8 or 0.4%
- Building and construction – 266 or 14.8%
- Engineering – 61 or 3.4%
- IT – 59 or 3.3%.
Contractor Calculator advises contractors that even when the economy is at its strongest, they should always ensure they are contracting for a ‘solid business with a healthy future ahead of it’.
The construction sector is still suffering but this month’s report from Contractor Calculator discovers the services sector appears to be ‘bouncing-back’. David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply explains: “The UK construction sector continued to be heavily impacted by the recession as it deteriorated at its fastest rate since June. One of the few glimmers of hope appeared in the housing sub-sector, which registered a marginal rise in activity for the first time in twenty-two months. Moreover,” he continues, “as commercial and civil engineering showed further signs of decline; this collectively highlights the volatility of the UK construction industry.”
So it appears there may be some green shoots of recovery within some sectors of the contractor marketplace, notably the IT sector but there are other sectors that are still struggling and will take longer to recover. It is likely the contractor marketplace will recover but each sector will recover at a different pace and respond to new challenges differently.
