Construction has been one of the hardest hit industries by the recession over the past two years and 2011 looks to be even worse.Firms have been laying off staff as work dries up and there are very few projects coming on line to offer any hope of a recovery for the sector. Companies have been focusing on keeping their existing client base, with big firms branching out into doing work that smaller ones have traditionally done.Andy Pereira, president of the Construction Association of Bermuda (CAOB), said it came as no surprise that the industry was struggling given the current economic climate. “There are not as many projects underway in 2011 as there were in 2010 at this time,” he said.“Established firms with good reputations have managed to keep busy with either existing clients, maintenance projects or small works. Most construction companies have downsized due to the current workloads.”And while Mr Pereira believes that many in the industry are going to suffer further pain in the year ahead, there are still opportunities to be had.“It seems 2011 will get worse before it gets better, however there are projects out there,” he said. “While lack of confidence in the economy has shelved some of these potential projects, it seems a few people are taking advantage of the down market and building.”He also reckons that this year’s Budget statement will have a significant bearing on the economy to encourage growth and development.“We hope to see an upturn in the market late in the year. However, this will depend on what is said in the upcoming Budget statement and whether Government intends to implement or change policy to stimulate the economy.“The CAOB have had good and productive dialogue with [Economy] Minister Kim Wilson and her team about training, employment and incentives to getting construction projects started.“Development investment requires confidence in the growth of the economy and a stable business environment.“Government has a significant responsibility to the Island to provide that stable framework with legislation and policies that are conducive to development, incentivise growth, and provide a business environment that is competitive internationally.”Last month Paterson Contracting laid off ten employees temporarily between jobs due to a lack of work as competition heats up for the scant number of contracts available.Speaking to The Royal Gazette earlier this year as part of an economic outlook 2011 series Alex DeCouto, president of Greymane Contracting, said that the start of work on the hospital, and Waterloo House in Hamilton, would help to stave off what would have been an “apocalyptic depression” for the construction industry last year.Mr DeCouto, former CAOB president, said that the projects by themselves would not cause a ‘boom’ and relatively few firms would benefit from them, while the rest of the industry would be looking for property owners to make continued investments.“Unfortunately I think funding will be scarce, as the banks remain bearish on lending generally,” he told this paper. “The big projects will skew the Department of Statistics’ numbers but I think that employment will remain static.“Any firms not involved in the aforementioned big projects will have to be very aggressive on pricing, and even lucky, to make it through this year.Mr DeCouto said that there had been whiffs of potential with one or two of the big hotels, but he had grown tired of being optimistic about such projects, added to which, with the recent report about losses in the tourism industry, financing was nigh on impossible to secure.