Turnover up but costs increase

UK: More than two thirds of engineering services companies have reported increased turnover, although material and labour costs have also risen.

These are the findings of the latest second quarter Building Engineering Business Survey report, produced by the Building Engineering Services Association, the Electrical Contractors’ Association, Scottish Electrical Trade Association and the Scottish and Northern Ireland Plumbing Employers’ Federation.

The results of the latest survey reveal that 77% of respondents saw turnover increase or remain steady in Q2 2018. However, this was slightly down on previous confident predictions, when 86% of respondents expected turnover to increase or remain the same in Q2.    

Despite the increase in turnover, material and labour costs also increased compared to Q1. 62% reported an increase in material costs, and 45% reported an increase in labour costs in Q2. Retentions were held against 61% of businesses, and late payment remains an issue for over half of respondents in commercial and public sector work.

The overall outlook for Q3 appears positive and optimistic, with 88% of respondents predicting their turnover will grow or remain steady for the quarter.