Turnover Boost for Electrical Industry
Turnover Boost for Electrical Industry
Over 8 in 10 contractors in the electrical and building services industries say that turnover increased or stayed the same in the second quarter of this year, according to a new survey from the Electrical Contractors’ Association (ECA).
The ECA’s Quarterly Business Trends Survey (QBTS) for Q2 2015 also found that:
- Larger contractors (turnover over £5m) were the big winners, with 7 in 10 reporting a rise in turnover, up from 62 per cent in Q1.
- Almost three-quarters of businesses with turnover of £1m-5m saw turnover increase or stay the same in Q2, an improvement in the previous quarter.
- The number of firms with turnover of £200k-£1m reporting a boost in turnover jumped to 34 per cent, up by 14 per cent compared to the last quarter.
- However 6 in 10 smaller businesses (turnover under £200k) saw turnover remain the same, with 22 per cent saying turnover rose, a fall of 3 per cent on the previous quarter.
ECA Director of Business Services Paul Reeve commented:
“Overall, the sector is reporting confidence in forward business for the second half of 2015, so it looks like we have achieved the much-anticipated sector recovery. However, the risk of over-trading and supply chain insolvency, particularly in a time of recovery, remains.
“Our practical advice to members is still to ensure they chose work with a realistic view to when they will be paid, and to the cost and availability of resources, and that they do not simply chase turnover".
The latest survey also found that businesses are mostly optimistic for the next quarter (Q3), with 85 per cent expecting turnover to rise or remain constant.
Significantly, there was a 12 per cent jump in the number of survey respondents anticipating turnover to increase in Q3.