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Wednesday, 18 September 2013

Construction Businesses Feel Cost Pressures

What a difference a few months make.

Back in May we blogged "Construction output in the UK shrank by 2.4 per cent in Q1 of 2013, falling to its lowest level since 1998."  

  • Now in Q2 the construction sector has seen a 20% increase in orders over the Q1.  
  • Atkins have announced that they are taking on 400 graduates and apprentices this year which is the most in its 75 year history
  • Plans for a "Gotham City" style of buildings is going to planners for Leadenhall Market in the City.  This will be a £400m project
  • Bricklayers are now able to command salaries of £40k+ a year
  • Bricks and breeze blocks are having to be sourced abroad as suppliers cannot meet demand.
  • Reservation rates on new homes reported by Crest Nicholson is up 46% on the same period last year.
  • Other builders say they can't build fast enough!

So this is some turnaround!  Construction is always very cyclical and can be slow to match demand but this is good news for the economy and will feed through into the GDP figures as we near the, Ahem... Election.  

For some smaller construction companies rising costs can be a complete nightmare as they may be finishing off jobs on fixed quotes and not been paid on new jobs taken on.  There could be a bit of cash crunch.  In fact our regional manager George Davis has been to see a few such companies recently.

No matter where you are based and want one our regional managers like George to visit you then call our freephone number on 0800 9700593.  A cash flow problem does not necessarily mean the end of the business!  Call for advice.

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