British construction companies are reportedly supposed to be overjoyed at the idea that the economy is in recovery mode and business is ‘booming’, but instead many are worried just how long it will all last. Despite the fact that they are currently enjoying the their fastest pick-up in business since before the financial crisis in 2007 and The Markit/CIPS UK Construction PMI output measure came in at 59.4, up from 58.9 in September last year, many of those in the construction industry are still wary of their future. As providers of construction accounting software, this is something that we are very aware of.
The industry has enjoyed a strong pick-up in the last six months due to government schemes enabling an increase in the number of people able to buy and build houses, but experts have warned that the industry as a whole is actually still struggling after it shrunk significantly during the recession. Noble Francis, economics director at the Construction Products Association, said, ‘After five years of falling output, two quarters of growth is good. But it’s far too early to get excited about a golden age.’
With the Funding for Lending and Help to Buy schemes expected to end in 2015 (also an election year), there are doubts over whether the recovery we are now experiencing is sustainable. The construction industry was one of the hardest hit during the recession as housing market activity slumped and building projects were axed to save money. Although business in the construction industry is currently improving, in 2012 construction was 14 per cent lower than the pre-recession peak. The situation is clearly still fragile.
The most any construction company can do is to work on stabilising their own business and ensuring they are doing whatever they can to gain success. Support should be taken wherever it is available, which includes automating your daily processes such as managing subcontractors and handling your accounts. Integrity’s construction management software can help you and your company prepare for a brighter future, so get in touch to find out more today.