Industry survey finds turnover boost
80% of electrical and building-services engineering firms enjoyed increased or level turnover during the third quarter of 2016, according to a survey from the Electrical Contractors’ Association. The findings cover the three months from July to September, almost immediately after the Brexit referendum. The responses indicate that, overall, there was only a modest pre- and post-referendum impact on the sector.
Businesses of almost all sizes reported a favourable third quarter. Small contracting firms, medium-sized enterprises and large organisations all reported a improvement on the previous quarter. However, businesses with a turnover below £200 000 had a slight downturn in the third quarter.
Steve Bratt, chief executive office of ECA, commented, ‘This survey shows that electrical and building-services firms remain broadly confident about their economic prospects, but we should remember that our sector feels any positive or negative effects later than many others in the supply chain.
In addition, the survey shows that the expectation for business is down for the final quarter of the year, and members are already reporting increasing prices of key materials and equipment. This means that 2017 may present even more challenges to profit margins.
The Building Engineering Business Survey, which is held in association with Scolmore, was sent out to ECA members in early October. The response rate was the highest in five years.