SMALL companies in the region are suffering most as the credit crunch begins to hit contracting and civil engineering, the sector's representative body has warned.
A UK survey of workloads by the Civil Engineering Contractors Association (CECA) has carried out a survey of its members and has discovered a link between a weakening of order books and falling optimism, and detects a weaker demand for development of building sites.
Cost pressures are also worrying, the survey found, with more than a half of firms surveyed saying their costs are rising faster than a year ago, and for only the second time in 11 years. Higher prices of fuel and steel are largely blamed.
Douglas Kell, director of CECA North-East, said: "Housebuilding in this region is virtually at a standstill now. Many small contractors are being hit quite severely by a weakening of demand for site work in building developments.
"These are an important element of total civil engineering workload that are often overlooked by those who comment on our industry."
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