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Building Material Statistics – September Insight
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The Department for Business & Trade have released the latest statistics for September 2023, but what does this mean for you and your business? We discuss below the Turnover Forecast for October, the Turnover Trend and Future Price Increases. We also provide our advice on how to keep yourself protected from increased rates of insolvency and minimise the risk of bad debt.
1. Turnover Forecast:
- October Expectations – In October 15% of currently trading businesses anticipate an increase in turnover, whilst 17.3% expect their turnover to decrease. The majority (57%) of trading businesses however, are expecting their turnover to stay the same for the month of October.
- September Comparison – The turnover forecast for October is quite similar to that of September, where 55% of trading businesses expected their turnover to stay the same, and 18% expected an increase.
2. Turnover Trends:
- August 2023 – In August 2023, 23.6% of trading construction businesses reported lower turnover compared to July 2023 while 56.1% reported no change in their turnover and 14.3% of currently trading businesses saw an increase in turnover.
- July Comparison – Notably, in July 17% of trading businesses reported their turnover was higher in comparison to June 2023. This is a 3% decrease in trading businesses reporting an increase in turnover in comparison to July, it is also important to note that July saw the first increase in companies reporting an increased turnover since March 2023.
3. Future Price Increases:
October Pricing Expectations – Price increases remain steady as this October, 16% of construction companies are expecting to increase their prices. This was the same proportion of construction businesses increasing their prices for September 2023.
The majority of construction companies, (58.7%) are expecting their current prices to remain the same for this October and 2.5% of construction companies are expecting their prices to decrease.
What does this mean for your business?
In Summary, at this current time the figures above show that many companies are expecting a steady turnover and pricing for October has remained consistent, this could indicate a level of stability within the industry. However, the 17.3% of trading businesses still anticipating a decrease in turnover in combination with a decline in trading businesses reporting an increased turnover in
August in comparison to July, displays that there is still a degree of uncertainty and for this reason it is crucial to remain vigilant and adaptable in your business plan, to do this we recommend the following
Enhancing Your Credit Management Strategy:
Evaluate and Elevate: Elevate your business’s financial health by conducting a thorough review of your credit management practices. This strategic assessment is the cornerstone of safeguarding your operations and bolstering your cash flow.
Information is Power: In today’s dynamic business landscape, knowledge is key. Seek out the finest credit information provider tailored to your industry. Stay ahead with the most current data, including insights into how other suppliers have fared with their payments. Armed with this knowledge, you can make astute, data-driven decisions.
Timely Action, Tangible Gains: Time is money, especially when it comes to overdue invoices. Swift action is your key to enhancing cash flow and mitigating the risk of insolvency. Proactive measures ensure that your revenue stream remains robust and resilient.