Capacity

Those working at full capacity remains static at 53%, which is above the level recorded in the second quarter of 1997. Of those not working at full capacity, 75 per cent cited lack of orders as a restriction on increasing capacity, 30 per cent financial reasons, 23 per cent shortage of skilled labour, 11 per cent interest rates and a further 5 per cent cited land supply. Other main reasons given included the black economy and unfair advantages of not paying VAT, bad/late payments by clients, cash flow restrictions and cut throat pricing by other contractors, (Table 6).

Table 6
Percentage of firms operating at 100%, 75%, 50% or less, 1988-1998.

	100%	75%	<=50%
1988	65	24	11
1989	51	29	20
1990	33	30	37
1991	17	29	54
1992	17	31	52
1993	27	27	46
1994
Q1	29	26	45
Q2	27	31	42
Q3	37	31	32
Q4	37	31	32
1995
Q1	38	30	32
Q2	35	32	33
Q3	43	28	29
Q4	39	27	34
1996
Q1	36	31	33
Q2	44	29	27
Q3	50	26	24
Q4	-	-	-
1997
Q1	42	28	30
Q2	44	29	27
Q3	62	22	16
Q4	56	28	16
1998
Q1	53	25	22
Q2	53	28	19

Reports from regions

In all regions, the percentage of member firms reported to be working at full capacity, has risen, compared to the corresponding quarter of 1997. The highest level of members working at full capacity is in the South West region at 63%. The lowest level is in London region at just 37%, (Table 7).

Table 7
Percentage of firms operating at 100%, 75%, 50% or less, by region.

	2nd Quarter 1997			2nd Quarter 1998
	100%	75%	<=50%	100%	75%	<=50%
Northern	59	23	18	54	21	25
North West	37	27	36	55	39	6
Yorkshire & Trent	57	27	16	60	24	16
Midlands	45	28	27	55	27	18
Eastern	41	30	29	52	36	12
London	28	35	37	37	22	41
Southern	46	33	21	51	32	18
South West	40	33	27	63	25	12
South Wales	35	30	35	48	24	29

First Posted: 22 July 1998. Last Updated: 22 July 1998.