12th June 2015
New research from the Electrical Contractors' Association (ECA) shows that the electrical contracting industry had a strong start to the year.
According to the results of the ECA's Quarterly Business Trends Survey (QBTS), 78 per cent of respondents saw turnover hold up or increase in the first quarter of 2015.
Companies with an annual turnover of more than £5m had the best start to 2015, with 62 per cent reporting a growth in revenue.
Contractors told the ECA they are optimistic about the next quarter, and the next 12 months. Eighty four per cent of members expect turnover to grow or hold over the next quarter and 86 per cent expect the same result over the next year. Companies with an annual turnover of more than £5m are the most optimistic - 96 per cent expect turnover to hold or increase over the next quarter and 92 per cent expect the same result over the next year. The smallest contractors are less optimistic, however. Only 16 per cent of businesses who turnover less than £200k per year expect revenues to grow in the next quarter, and 25 per cent expect the same result over the next 12 months.
"Our industry has posted a strong overall performance over the first quarter of 2015, which shows recovery has extended to building services," says ECA Group CEO Steve Bratt. "I would hope this will continue over the next quarter and the next year as public sector and commercial projects reach the stage where electrical and other specialist contractors are brought in."
He added: "Despite the strong performance this quarter, late payment is still a massive issue for many of our members. A number of initiatives have been brought in over the last 18 months, including Public Contracts Regulations and an improved Prompt Payment Code. But while the Government’s aim of using the Prompt Payment Code to drive good payment practice is understandable, we urge it to be ready with prompt payment legislation - right across the commercial and public sectors - if this approach fails."
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