ECA, BESA, SELECT and SNIPEF research shows industry sees steady growth in Q4 2017
Eight in 10 (80 per cent) engineering services firms say turnover increased or remained steady during the final quarter of 2017, according to new findings from the sector-wide ‘Building Engineering Business Survey’, sponsored by Scolmore.
The survey, run in partnership by leading engineering services trade bodies including SELECT, received 416 responses from companies across the multi-billion pound industry during January this year, regarding their business performance in Q4 last year.
Looking ahead to the first quarter of 2018, 85 per cent businesses said they expect turnover to increase or remain the same. This expectation of further growth is despite pre-Brexit uncertainty and the collapse of Carillion, which occurred one week before the survey was sent to respondents.
However, many survey respondents reported that operational costs had risen, with almost two-thirds facing materials price rises (65 per cent), and 50 per cent facing labour cost increases. Underlining the continual problem of poor payment practice, over half of firms said they continue to be paid late on both commercial and public sector work.