Confidence is on the rise among small construction firms as 75% of subcontractors plan to invest in their business in the next three months to come.
Business funder Bibby Financial Services (BFS) published their latest SME Confidence Tracker report (which surveys 1,000 business owners) and revealed that confidence is bouncing back after short-term uncertainty jitters hit the market following the UK’s vote to leave the EU.
In total, 50% of small and medium-sized businesses working in the construction industry believe their work volumes will rise over the next three months. This represents the highest level since before the EU referendum.
And businesses are planning to get their investment right. Over the next four months, firms plan to put £10,000 of investment into staff training, recruitment and machinery.
Almost 75% of construction companies are planning to invest over the next couple of months to come, in comparison 59% is the national average for companies investing in the near future, the BFS revealed.
Helen Wheeler, managing director of construction finance at BFS, said:
“We are now seeing a step-change in attitudes amongst smaller construction businesses, with more firms looking to invest and grow. Work volumes are also rising, which is a positive indicator, particularly in light of wider economic uncertainty surrounding the UK’s separation from the EU.”
“It’s encouraging to see construction businesses investing in people and machinery as such activity has a positive multiplier effect on supply chains throughout the entire country.“
When it comes to the challenges smaller construction companies are facing, the main issue named was finding and keeping good, high-quality staff and winning new customers.