This sharp decrease in the public non-housing sector is a result of projects in the education and health sub-sectors coming to an end with little else in the pipeline.

Commercial construction is also due to increase in the next two years by 1.6 per cent, boosted by projects including the £250m City Sentral shopping centre in Stoke-on-Trent.

Phil Wilson, executive director of the West Midlands Centre for Constructing Excellence (WMCCE), said: “There’s no denying that the construction industry is facing a challenging future, as the figures in the report suggest.

“Waning consumer confidence, a depressed housing market and economic uncertainty at home and abroad have compounded the situation and with no immediate sign of a recovery construction companies are rightly concerned.

"It’s great that Birmingham has a number of big construction projects in the pipeline with Eastside and HS2, but the reality is that these won’t start for a few years.

“What the industry needs now is action from the Government. Significant new regional jobs can be created if the Government reduced VAT on residential retrofitting initiatives, provided adequate funding help for demonstration projects and simplified procurement processes on public sector construction projects.

“The industry also needs Westminster to recognise that construction can provide long-term employment and long-lasting economic benefits, with every one pound invested in construction typically delivering a three pound economic impact.”