Construction output in the North East fell by nine per cent last year, which was one of the biggest falls in the country. However, output also dropped in Scotland and the North West.
The Construction Skills Network said the shortage of private investment continued to hit the region, but it thinks the North East will recover quicker than the rest of the country.
One roofing company in Washington says it has had to adapt to survive.
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On a tour of the North East today, the Chancellor George Osborne made a series of promises which he claimed would help create 50,000 jobs.
Hundreds of people are expected to take part in two separate demonstrations in Newcastle tomorrow.
Teesside car parts manufacturer Nifco has announced a new £50 million deal with US car giant Ford.