More than eight 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 survey from the Electrical Contractors’ Association (ECA).
The ECA’s Quarterly Business Trends Survey for Q2 2015 also found that:
- larger contractors (turnover over £5m) were the big winners, with seven in 10 reporting a rise in turnover, up from 62% in Q1;
- almost three-quarters of businesses with turnover of £1m-5m saw turnover increase or stay the same in Q2, an improvement on the previous quarter;
- the number of firms with turnover of £200k-£1m reporting a boost jumped to 34%, up by 14% compared with the last quarter; and
- six in 10 smaller businesses (turnover under £200k) saw turnover remain the same, with 22% saying turnover rose, a fall of 3% on the previous quarter.
Director of business services Paul Reeve said: “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 choose 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% expecting turnover to rise or remain constant.
Significantly, there was a 12% jump in the number of survey respondents anticipating turnover to increase in Q3.