Turnover rises post Brexit4th November 2016
UK: Over 80% of electrical and building services engineering firms saw turnover increase or stay the same during the third quarter of 2016.
The new survey findings from the Electrical Contractors’ Association (ECA), covering the period immediately post-Brexit indicate that, overall, there was only a modest pre-and post-referendum impact on the sector.
Businesses of almost all sizes are said to have had a favourable third quarter, with small contracting firms, medium-sized enterprises and large organisations all reporting an improvement on the previous three-month period. However, micro businesses with turnover below £200,000 had a slight downturn in Q3.
Looking ahead to the final quarter of 2016, the ECA says the outlook is also positive overall. Business expectations, however, are down overall, with 31% of firms expecting a rise in turnover in Q4 – a fall of 11% from expectations in the ECA’s previous survey for Q3 this year.
“This ECA survey shows that electrical and building services firms remain broadly confident about their economic prospects, but we should remember that our sector feels any positive or negative effects later than many others in the supply chain,” said ECA CEO Steve Bratt.
“In addition, the survey shows that the expectation for business is down for the final quarter of the year, and members are already reporting increasing prices of key materials and equipment. This means that 2017 may present even more challenges to profit margins,” Bratt added.