Construction SMEs have the foundations to build on
2020 was an extremely challenging year for UK businesses ; with SMEs in particular being hit the hardest as the Covid-19 pandemic put the brakes on economic activity , causing significant supply chain disruption and knocking business confidence . But as the vaccination roll out progresses , the medium-term prospects look a little brighter for SMEs .
One of the least affected sectors during the pandemic has been the construction industry , with building sites only closing for a limited time during the first lockdown . Although extra measures ( and costs ) had to be incurred to ensure that sites could operate in a Covid-safe manner , construction firms were fortunate compared to their counterparts in areas such as hospitality and transport .
It appears that there ’ s even more to feel positive about with the sector seeing the biggest increase in its workload in five years * and the government putting it at the front of the UKs economic recovery from the pandemic . This increase has mostly been driven by the demand for housing and the continuation of projects put on hold due to the pandemic , which has resulted in rapid growth .
Private residential construction saw the biggest increase , followed by infrastructure . The Royal Institution of Chartered Surveyors said the biggest constraint on construction was now a shortage of building materials , rather than the financing difficulties faced in previous quarters .* This is something for SMEs to consider when factoring in the potential challenges of access to materials sourced from the EU post Brexit .
Our own experience is that our customers ’ activity has largely recovered with turnovers returning towards where they were when
the pandemic began . Businesses have used the various government support schemes to protect their position while their activities were severely curtailed . These have helped them to return of trading , which has also meant a return to accessing traditional forms of funding .
We continue to be here to support SMEs in the construction sector . At Aldermore we offer a bespoke range of tailored construction finance solutions . Whether it ' s to help SMEs gain access to cash upfront to take on a new project , or funding for equipment such as cranes or cement mixers , or even supporting with a property development project - our teams are here to help those within the industry keep cash flowing .
Visit our dedicated construction page to find more information on key topics and how we ’ re supporting our customers .
* UK construction reports biggest rise in workload since 2016 | Reuters . Reuters . com UK construction reports biggest rise in workload since 2016 . 6 May 2021
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