Construction firms in Lancashire and beyond are upbeat about the future, according to a new report.
A survey of more than 600 companies by national law firm Irwin Mitchell found almost two-thirds (64.7 per cent) of construction firms in the North West are more optimistic about their future prospects than they were 12 months ago.
The report did highlight, however, growing concerns among senior decision makers about the cost of labour – with 61 per cent expecting wages to rise during the rest of 2014.
According to Irwin Mitchell, this is being caused partly by a skills shortage in the sector.
The law firm also highlights the growing issue faced by main contractors who are seeing tender return prices increasing, due to sub-contractor price inflation following a long period of flat prices.
Julie Morrissy, construction partner at Irwin Mitchell, said: “On the whole, these results reflect an improving construction sector.
“Not only are we seeing the impact of strong demand for house building, the sector is being buoyed by mid to high-end residential developments, offices, commercial space and logistics.
“The key now is to ensure this positivity is sustained into the longer term.
“The opportunities exist, but there are threats, and it is vital companies deal with them.
“The availability of materials is a concern, but with the majority of firms expecting wages to increase during the rest of the year, it’s clear that the lack of skilled workers could also hamper future growth.”