Profit margins have dipped across the CN100 but not to unexpectedly low levels, suggesting that flat is indeed the 'new normal'. In fact, margins appear relatively stable compared with the previous year: contractors m the top ranks of the index have seen the most consistency, while those in the middle brackets have seen a more dramatic dip, on average. Looking ahead, a number of factors should keep optimism over recovery in check, at least in the short term. Low bidding prices during the downturn will continue to affect margins into next year, as the industry continues to operate in a buyers' market with strong competition. Meanwhile, companies targeting major UK growth prospects may face even stiffer competition from overseas players keen to take advantage of domestic infrastructure opportunities.
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