Mitchell Smith, regional director of North-East building company Rok, belives the construction industry will continue to grow next year.

"I Believe the construction industry will continue to be buoyant over the next 12 months. Social housing will remain a key objective for housing associations as they continue to push towards improving social housing to meet the Government's Decent Homes target of 2010.

For clients of the industry, rising inflation due to increasing energy prices means that cost control is something which will be key to the appointment of contractors. The ability to keep to a budget and manage suppliers to do the same will be high on the priorities of many tenders.

More than ever, the ability to deliver a high-quality service, within time and budget requirements of the customer, will be key to the successful procurement of contracts. Awarding of contracts is now taking between six and 12 months and firms need to be flexible in their approach and be prepared to re-evaluate quotes and tender submissions.

Gone are the days where the job was simply to move on site, complete as quickly as possible, then move onto the next job. Consumers want more than that. Quality, value for money, and job completion within time and budget targets are expected.

They want to be involved with construction partners that fit in with their values and needs and ones that "go the extra mile". I believe it is those firms with foresight to cope with the added extras that will be the most successful over the next 12 months.

Another area which should remain very buoyant is new build, as the number of new developments continue to grow in the North-East's towns and cities. This also has a knock-on effect with businesses recognising the need to upgrade their own premises in order to be in keeping with their surroundings.

Skill shortage remains the biggest challenge for our industry. In 2007, the Government will be called upon to make decisions on at least two proposals which would improve our industry. The recommendations coming out of the Leitch and Barker reviews are key to the future of construction.

Leitch's proposal for the £3bn budget for skills training to be spent being decided by industry would ensure the British workforce that is truly prepared for employment, rather than simply qualified. The Barker review also argues for planning restrictions which hold back our economy to be eased.

If both of these proposals are acted upon, 2007 will be a time for double celebration in our industry. "