CONSTRUCTION and infrastructure workload expectations continue to improve with the most upbeat responses since the referendum, according to the latest Royal Institution of Chartered Surveyors (RICS) South West Construction Market Survey, Q1 2017.

The pace of growth has increased across all sub-sectors.

In Q1 2017 32 per cent more respondents in the South West reported an increase in workloads, (up from +22 per cent in Q4 2016).

Expectations for the next 12 months also remain firmly positive in the region particularly for activity levels although they have reduced slightly in case of profit margins, yet remain higher than the national average.

The shortage of skilled labour persists in UK infrastructure and construction and is again widely cited by contributors as a factor potentially impacting the performance of the industry.

Looking at the different sectors, 33 per cent more respondents cited an increase in private housing output rather than a decrease.

The commercial sector also witnessed growth in workloads with 37 per cent more respondents seeing a rise.

Infrastructure workloads continue to grow steadily with the most significant increases in rail, road and energy categories. On a national level these sectors are also viewed as the most promising sectors in infrastructure for the next 12 months.

As workloads increase, skill shortages are still sighted as a significant problem to the industry with 41 per cent of respondents stating a shortage of skilled labour to be a key impediment to growth. This is slightly down from 48 per cent in the last quarter.

However latest results and surveyors comment suggest that labour shortage pressures across the construction sector may be intensifying.

Alongside this, 63 per cent of respondents reported insufficient availability of quantity surveyors in the South West, with skill shortages in this area becoming increasingly prominent since 2012.

National results also point to the quality of available workers (rather than simply the quantity) being the principle driver in skill shortages in the region, with 67 per cent of respondents taking this view.

Looking at this further, 59 per cent of contributors feel that improved education pathways and training would the most effective policy response to alleviate labour supply pressures, whilst 31 per cent of contributors feel direct government subsidisation of training would be the most effective.

Meanwhile, financial constraints are still the most significant obstacle to growth with 72 per cent of respondents citing this as an issue.

Planning and regulation remains a significant impediment to growth with 77 per cent of respondents citing this as an obstacle in the region (up from 70 per cent in Q4 2016).

The South West has observed an increase in pace of output growth in Q1, this was due to the pace of growth quickening within the infrastructure, private industrials and public non-housing sectors.