“State of Trade Survey” Makes For Interesting Reading
If you are involved in property development, whether you are seeking development finance for your project or not, then you may find the Federation of Master Builders “State of Trade Survey’ covering the first quarter of 2015 of some interest. It has been produced for over twenty years and concentrates on small and medium sized construction firms operating within the building industry. It looks at various factors within that industry.
Some of the interesting things include the fact that an increasing number of firms in the building trade saw their workloads rise in Q1 2015 with 39% reporting this to be the case in comparison to 35% in the last quarter of 2014. What was also interesting was that 45% of those taking part in the survey were predicting taking on more work in the next quarter which was up on the previous survey’s results when 29% felt that they would be taking on more work in the following quarter.
There were also more firms that saw workloads drop in Q1 of 2015, with 20% feeling this to be the case – up from 18% in Q4 of 2014. Some 15% of firms forecast that their level of work would drop in Q2 of 2015 – that was a drop on the 24% making the same prediction in Q4 of 2014.
In the next six months it is forecast that material costs, salaries and wages and output prices are forecast to increase. In view of this, when preparing a business plan, perhaps because you are seeking development finance, you may wish to factor this into your figures so that you are not caught out by such potential rises. Better to be “safe than sorry”.
There is an awful lot of other information contained within the above survey so, if you are involved in the development of property, you may wish to read it in its entirety. It can quickly be found through the website of the Federation of Master Builders. In the meantime, should you require development finance, why not get in touch with us and speak to one of our experienced team.