Construction SMEs help power recovery

Grant Prior 8 years ago
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Small and medium sized construction companies saw significant growth in the second quarter of the year according to a study by specialist finance provider Bibby Financial Services.

Bibby’s latest Business Factors Index reported the construction sector at its highest point since the Index began in 2007.

Karen Rawlinson, Director of Construction Finance at BFS said: “These results are encouraging and much of this growth can be attributed to the house-building recovery.

“It seems as though the Help to Buy scheme is having a real impact, which is positive.

“While there is still a long way to go to reach pre-recession levels of business performance, the Business Factors Index for Q2 shows a period of steady growth among construction businesses using specialist, invoice finance.”

Survey participant Vince McCormick runs a business in Swansea providing finishing trade services to a number of large housing developers.

He said: “The first two quarters of 2013 have been excellent and I am confident that the rest of the year will be the same if not better.

“Business is definitely picking up and confidence within the industry is stronger. I believe the days of low profit and chasing turnover are disappearing.

“There is a lot of work out there especially if you’re able to give a good service. A lot of self-employed tradesmen left the sector during the recession and went into a steady job because conditions were tough.

“As a result there are fewer people around now which means if you have been able to stay in business there is a demand for your service.”

The Index for the construction sector in the second quarter stands at 110.2, up from 102.6 in the first quarter of 2013.

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