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Orders drop deepens two-speed civils market

Orders drop deepens two-speed civils market

Order books across the civils sector have slumped to their weakest position since 2020 despite workloads edging back into growth at the end of last year.

According to the latest work trends survey from the Civil Engineering Contractors Association a balance of 17% of firms reported higher workloads in Q4 than a year ago, reversing the dip seen in Q3.

But order books barely shifted, with a balance of just 3% reporting growth – the lowest reading since 2020 Q3 and a warning that the forward pipeline remains fragile.

Civils is splitting into a two-speed sector with larger contractors better insulated than smaller subcontractors.

Firms employing more than 600 staff reported stronger workload and order balances than smaller civils firms, reflecting spots on major frameworks and energy programmes.

Smaller civils firms tied to local roads and early-stage works face a tougher outlook, compounded by a wet start to 2026.

Cost pressures remain intense, with 86% of firms reporting annual increases. Tender prices are still rising for both new work and repair and maintenance.

The upturn in activity was driven by airports, electricity and gas, with energy-related work providing the strongest boost to both workloads and orders.

Electricity recorded the healthiest order book growth, followed by airports and gas. Water and sewerage and harbours also saw modest gains.

Transport remains the drag. Rail workloads fell sharply while motorways, trunk roads and local roads continue to post declining order books, extending a run of contraction that now stretches back several quarters. Preliminary works has also been in decline for more than a year.

CECA Policy Director Ben Goodwin said: “CECA’s latest survey shows a mixed picture… the clear weakness in order books is an indication that too much of the pipeline is struggling to be converted into committed work on the ground.”

Despite the fragile pipeline, 60% of firms expect workloads to rise over the next 12 months, signalling cautious optimism heading into 2026.

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