Capacity
A rise of 11 per cent has been recorded in those member firms reported to be working at full capacity. The figure now stands at 64 per cent, and this is above the third quarter 1997 level of 62 per cent. Of those not working at full capacity, 71 per cent cited lack of orders as a restriction on increasing capacity, 28 per cent a shortage of skilled labour, 25 per cent cited financial restrictions, 18 per cent interest rates and a further 11 per cent land supply. Other reasons quoted included bad debts and their recovery, latest tax changes affecting the ability to employ sub contractors, unfair competition from the Black Economy and bad weather, (Table 6).
Table 6
Percentage of firms oeprating at 100%, 75% or 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 |
| Q3 |
64 |
21 |
15 |
Reports from regions
In the Yorkshire and Trent, Eastern and London regions, the percentage of member firms reported to be working at full capacity has fallen compared to the corresponding quarter of 1997. In all other regions the percentage has risen. The highest level of members working at full capacity is in the Northern Counties region at 92 per cent. The lowest level continues to be in the London region at 44 per cent and is significantly lower than the level of the third quarter 1997, (Table 7).
Table 7
Percentage of firms operating at 100%, 75% or 50% or less by region, 3rd Quarter 1997 and 3rd Quarter 1998.
| |
3rd Quarter 1997 |
3rd Quarter 1998 |
| |
100% |
75% |
<=50% |
100% |
75% |
<=50% |
| |
|
|
|
|
|
|
| Northern |
52 |
33 |
14 |
92 |
8 |
0 |
| North West |
59 |
23 |
18 |
67 |
29 |
4 |
| Yorkshire & Trent |
75 |
13 |
13 |
58 |
23 |
19 |
| Midlands |
44 |
33 |
22 |
62 |
21 |
18 |
| Eastern |
65 |
9 |
26 |
54 |
35 |
12 |
| London |
59 |
12 |
29 |
44 |
24 |
32 |
| Southern |
66 |
19 |
16 |
74 |
15 |
10 |
| South West |
71 |
21 |
8 |
76 |
11 |
14 |
| South Wales |
42 |
50 |
8 |
50 |
30 |
20 |
First Posted: 22 July 1998. Last Updated: 19 February 1999.
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