The West Midlands construction industry is "more than ready" to face the challenges that 2008 may bring, according to Rob Atkinson, regional head of building group Rok.
He predicts that all sectors will show a modest growth across the next 12 months - but those that benefit most will be organisations that remain proactive in the current uncertain economic climate.
"The West Midlands' construction industry is in a relatively healthy condition," Mr Atkinson said. "However, there are also considerable challenges to be faced and organisations need to acknowledge and prepare for them if they are to prosper."
The continued success of the construction sector is vital to the region's economy as it is a key employer and drives economic activity elsewhere.
The sector as a whole needs to ensure that its historic year-on-year growth of about two per cent is sustained in order to help support the region's necessary economic growth throughout 2008.
Companies can put a floor under their prospects by maintaining best practice, developing new systems and technologies and committing to sustainable development, according to Mr Atkinson.
"Over the past few years, private housing has been the strongest construction sector in the region, largely because of the buoyant housing market - but things are changing," he said.
"The housing market looks set to remain slower right across the UK in the first part of 2008 and this will affect high street spending, maintaining the general slowdown of the economy.
"Next year should see growth in the public housing sector as the Government works towards its target of 240,000 new homes a year.
"The most consistent area of our business will undoubtedly be in the maintenance and repairs market, which traditionally sees an increase in demand when the larger capital projects are put on hold.
"'Make do and mend' refurbishment options are always preferred during times of economic slowdown and I expect that this will be a much more popular choice than new development schemes for the best part of 2008.
"Our repair work for the county's best known insurance companies is also unaffected by the overall state of the economy and this will continue throughout the year.
"Commercial construction in the West Midlands is predicted by ConstructionSkills to increase by an average of 4.2 per cent a year. More than £2 billion worth of mixed-use projects, mainly in Birmingham and Wolver-hampton, £1.1 billion of work on hospital PFI schemes and new Building Schools for the Future projects in Birmingham and Solihull will all play their part.
"Infrastructure will be another area of growth through to 2011. The £500 million redevelopment of Birmingham New Street and improved links with the M6 toll road will play significant roles in that.
"Skills shortages remain one of the biggest challenges for the construction industry across the UK.
"At a time when we are still coming to terms with the fallout of the credit crunch, the West Midlands' ability to grow and prosper will depend on our goal of possessing Europe's most highly skilled workforce with regards to both management and trades personnel.
"The Government has a clear role to play in addressing this skills shortage, but individual organisations must also take responsibility.
"The focus for Rok in the New Year will be to continue to concentrate on meeting the general building and maintenance needs of our local communities across the West Midlands and delivering our services to the same high standards."
