New figures have revealed that construction companies in Wales have negative expectations for workloads - including buildings and infrastructure projects - for the first time in more than a year.

The research, from the RICS Construction & Infrastructure Monitor for the third quarter of 2022, asked construction companies across the country what their anticipated workloads were for in twelve months’ time.

The balance of respondents answered that they expected their workloads to be lower, at minus four per cent. This could mean a reduction in the amount of new properties built next year.

This is down from 14 per cent in the previous quarter and 49 per cent at the same time last year, with researchers saying that this indicated a “marked deteriorating in confidence.”

When respondents were asked about factors that they thought were currently limiting activity, the most common answers were labour shortages, lack of materials and financial constraints.

More than half - 65 per cent - said that they were experiencing shortages of quantity surveyors, and 62 per cent reported a shortage in other construction professionals.

Looking at current figures, a net balance of 15 per cent of respondents said that their workloads were higher in the most recent quarter. However,this was down from 37 per cent two quarters ago.

Jamieson Edwards of Uzmaston Projects in Haverfordwest said: “In terms of materials, supply chains are still facing issues. Costs are also increasing, and the quality of trade labour is decreasing.”

Simon Rubinsohn, Chief Economist at RICS, commented “The deteriorating macro environment is clearly taking a toll on the construction industry with access to credit now being cited as a key challenge for businesses alongside the more familiar issues around building materials and labour.

“Indeed, the RICS metric capturing the extent of skill shortages in the sector has barely budged in recent quarters with quantity surveyors and a range of skilled trades in particular short supply.

“Meanwhile, the impact of the shift in the economic outlook is most visible in the residential and commercial sectors where workloads are now viewed as likely to flatline over the coming year. Ongoing commitments to a number of big projects is, however, continuing to support activity in the infrastructure area.”