State-of-trade survey reveals growing business confidence
More members of the Building & Engineering Services Association (B&ES) are experiencing an increase in orders and enquiries, according to the latest research by the association. The research revealed an improvement in market conditions over the past six months. This, in turn, has generated optimism about future prospects for the sector from 25% of respondents — and two-thirds in the cast of the largest B&ES firms.
In contrast to the findings of the previous two state-of-trade surveys in July 3012 and January 2013, turnover and direct employment levels were both reported to have stabilised. There was also widespread expectation that workforce numbers would increase in the short term, along with apprentice intake.
Over 20% of respondents saw their order books increase in the past six months. Prospects for the residential sector, previously identified as suffering most severely from the economic downturn, showed particular improvement.
Also discernible were a slowing down of the drop in tender prices, the re-emergence of skills shortages in certain disciplines and a likely increase in investment in vocational education and training.
The brighter picture was evident across the UK, with the exception of the east Midlands and eastern counties, where more companies reported a decline, rather than an increase, in their 6-monthly turnover.
The principal negative elements highlighted by members were rising materials and, in some cases, labour costs. There was also a further increase in the prevalence of pre-qualification questionnaires, with larger members indicating that the introduction of PAS91 as a standard pre-qualification specification for use across the construction industry has done little so far to simplify the process.
Roderick Pettigrew, chief executive of B&ES, comments, ‘The findings of this survey paint a rather more encouraging picture than we have seen since the start of the downturn — and one which should provide some modest encouragement across the building-services sector and the wider construction industry.’
While acknowledging that the signs of recovery were fragile at best, he added that the time had come for all organisations involved in construction to start preparing for growth in the medium to long term.
The third B&ES independent state-of-trade survey covered the six months from January to June 2013, It was carried out across the Association’s membership by independent research organisation Lychgate Projects. Over 150 members took part.
