Clearview National January 2020 - Issue 218 | Page 16

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Double glazing most
secure profession,
but roofing is risky
study reveals
Plus the most successful UK
cities for tradespeople
» STARTING A NEW TRADE BUSINESS IS
an ambitious endeavour. And with the pressure
to survive, tradespeople are looking for the best
opportunity for their business to thrive.
According to new data, three in four (77%)
trades businesses across the UK survive beyond
two years, on average. Now, to help ambitious
tradespeople make a clear decision, Confused.
com has analysed data on the trade industry
using expert sites, such as Thomson Local and
Company Check to unveil the UK’s best and
worst cities in the UK for trade start-ups.
BEST LOCATIONS FOR SUCCESS
For anyone looking to start a trade business,
the Midlands is a promising option. Leicester,
Nottingham and Birmingham are all within the
top six areas based on business success rate.
The UK’s capital emerges as the trade start-
up hub and most competitive region. There
are 7,649 trade businesses in London, 141%
higher than the average UK city, with an
average survival rate of 84.1%.
Meanwhile, Cardiff has the fewest number
of competing trade businesses in the UK
(1,457), suggesting it could be one of the
best cities for a start-up. In particular, roofing
and double glazing installation business are
thriving, with a 100% two-year survival rate in
the Welsh capital.
MOST SUCCESSFUL TRADES
The study reveals that the most secure trade
professions are electricians and double-glazing
installation businesses – both of which have an
average survival rate of 89% after two years.
Electricians also receive the highest day rate
of £215. While electricians require a relatively
steep van insurance policy of £1,183, the high
rates mean they also have the largest profit
margins – approximately £181 a day.
Double-glazing installers, meanwhile, might
share the same survival rate as electricians, but
a £150 day rate means their margins are much
lower at only £119 a day.
Meanwhile, starting a roofing business could
be a risk, as the trade has the lowest survival
rate (78%). However, more than three in four
businesses make it past the two-year mark.
Roofing businesses in Sheffield, Nottingham
and Cardiff all have the best chance of thriving,
with a 100% survival rate.
FINANCIAL CONSIDERATIONS
FOR TRADERS
When making a plan for a new trade
business, financial considerations including
income rates, van insurance and running costs
should be factored in. The research shows
that electricians charge the highest daily
rate at £215 on average, followed closely by
Location Average Trade
Survival Rate No. of Competing
Businesses Most Successful Trades
(100% rate of success)
Leicester 90.40% 1657 Carpenter, Landscape Gardener,
General gardener, Painter and decorator
Bristol 89.90% 2212 Double glazing installer, Carpenter,
Landscape gardener, General gardener
Sheffield 88.20% 2947 Roofer, Landscape gardener, Gardener,
Painter and decorator
16 » JAN 2020 » CL EARVI E W- UK . C O M
plumbers at £210. Gardeners have the lowest
running costs of all trades at just £56.15- that’s
more than 2.6 times less than electricians at
£184.24.
Van insurance varies by trade, even between
similar work – landscape gardeners pay £1,424
a year on average (the highest insurance cost),
while other gardeners pay only £1,392. Trades
with the cheapest van insurance include
painter and decorators (£870) and double-
glazing installers (£889), while contractors sit
just under the median cost, paying £1,064 a
year.
Builders have the highest public liability
insurance at £278 a year, higher than plumbers
(£217) and carpenters (£126). Electricians
pay the least at only £81, contributing to their
high profit margins.
Across all trades, the average cost of
marketing, which includes running a
two-week bus stop advert, a one-off local
newspaper advert and a radio advert over one
to two months, would be £26.71 each day on
top of running costs.
Amanda Stretton, motoring editor at
Confused.com comments: “Starting a business
comes with a lot of risk and pressure. And
our investigation shows that the success of a
business could come down to the location.
“But where is best? To clear this confusion
we’ve highlighted the cities in the UK with
the best rate of success for different trades, and
perhaps where to avoid.
“If you’re starting from scratch, the location
is key, but there’s also a lot to consider when
joining a trade. Our guide to becoming a
tradesperson outlines everything you need to
know when looking to start a career in the
trade industry.”