Skip to content Skip to footer

Electrical contracting sector posts improved performance for Q1 2014  

Electrical Review Logo

New research from the Electrical Contractors’ Association (ECA) suggests businesses in the electrical contracting sector posted an improved performance for the first quarter of 2014.

80% of respondents to the ECA’s ‘Quarterly Business Trends Survey’ said their turnover had either held, or increased during Q1 2014; with 43% reporting an increase, up 14% on Q4 2013.

Members are optimistic about the next quarter and the next twelve months, with nearly one third (30%) of the sample expecting an increase in turnover in Q2 2014, and 48% expecting turnover to increase over the next twelve months.

Companies with a turnover of £200k-£1m were the most confident about the next quarter and the next twelve months. Just 6% expected turnover to decrease over the next quarter, and none of the businesses surveyed expected revenues to drop over the next year. Businesses of this size enjoyed an improved performance in Q1 2014, with half (50%) seeing turnover increase – up 15% on Q4 2013.

“The first quarter of 2014 has been a strong one for ECA members and our industry, as we finally start seeing the benefits of the economic upturn and the improvement in the construction marketplace,” said ECA group CEO Steve Bratt. “Large education, healthcare, and infrastructure projects are being commissioned, and we’re starting to see the benefits of these further down the supply chain. Hopefully it’s a sign that the recovery we have all been waiting for is taking root.”

He continued: “We urge contractors to take this as an opportunity to review their business model and their management approach. By exploring how to win repeat business from the most profitable customers, investing in skills and service quality, and looking at how to identify and successfully enter attractive new markets, contractors can help themselves to build a business that will survive turbulence in the market. We saw how the last recession, and even the recovery phase, affected our sector. The contractors that see improving commercial prospects as an opportunity to improve, grow and diversify, will be best equipped to handle whatever lies ahead.”

Bratt concluded: “A key issue that continues to the industry back is late payment, and the attitude of many of those at the top of the supply chain to paying on time. The government has sought to address the issue, notably with the launch of its Construction Supply Chain Payment Charter. While this provides some good guidance on payment, it is voluntary and it doesn’t go far enough. Until prompt payment becomes a legal requirement, it is difficult to see how this problem will be solved. We are asking the government to get tough on late payers – and that includes excluding them from public procurement opportunities if they fail to pay fairly.”

Top Stories

Stay In The Know

Get the Electrical Review Newsletter direct to your inbox, and don't miss a thing.