Construction contractors have the most confidence in sales growth
Limited company contractors working in the construction industry will be interested to learn that SMEs in the sector have been found to have the most confidence in sales growth.
According to research carried out by Bibby Financial Services, smaller sized businesses within the construction industry were found to be the most confident with regards to sales growth over the last three months leading to October.
The report, which surveyed 1,000 small and medium-sized businesses across all sectors, shows that 57% expect sales to increase in Q3 – this is down from 64% when surveyed in the first quarter of the year.
However, two thirds (61%) of construction companies were more confident in their future prospects. When compared to data taken three months previously, this figure was just 53%.
Helen Wheeler, Managing Director of Construction Finance at Bibby Financial Services said, “The small and medium-sized construction firms and sub-contractors we have spoken with tell us that they expect sales to increase this summer, and much of this work has been generated by large house-building developers.”
She added, “With the summer months the busiest time of the year for the construction industry, it is heartening to see that SMEs in the sector are confident about sales growth. This shows that work is spreading through the chain and sub-contractors are benefiting.
“Other sectors are not as bullish, but this could reflect a more realistic optimism now, following steady growth over the past six months.
“If construction businesses are to achieve the growth they expect, they need to ensure they have sustainable funding in place to enable them to take on more work.
“We have seen an upturn in the number of construction firms looking for finance and in the second quarter, we provided £58 million in funding to the sector, up from £54 million in the first three months of the year.”
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