Are you in the construction industry?

It is a mixed picture according to two recent surveys published this week.

Housebuilding activity has reduced according to S&P and the Chartered Institute of Procurement and Supply (Cips).

It is down 42.7 in May, down from 43.0 in April. A reading below 50 is a sign that output is contracting rather than expanding. This is being blamed largely on the rapidly increasing interest rates and consequent reduction in the numbers of mortgages being granted.

However, according to the same survey Commercial building was the strongest performing subsector, registering an index reading of 54.2.

Whether that lasts remains to be seen as another piece of research by property consultants Knight Frank and commercial real estate firm Cresa found that 50% the largest businesses they questioned expect to shrink their workplaces over the next three years.

However, it also found that just over half (55%) of smaller businesses were expecting to increase their global office space.

Clearly it is going to be a difficult few years for the construction industry, where margins are notoriously tight.

It makes sense, therefore to keep a sharp eye on the cash flow in your construction business and we have a free tool to help you.

You can download it here. It will help you know exactly where your business is financially.

Share article