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Confidence is currently sky high ; the latest IHS Markit / CIPS construction PMI exceeded forecasts to jump from 64.2 to 66.3 in June . This was the highest reading since June 1997 and well above the 50 mark that separates growth from contraction . While this has fuelled vast job creation within the construction sector , there is a deep concern that demand simply cannot be met while the much of the workforce , who may not have Covid , are being told to isolate . This means that labour will be directed to large-scale commercial work , whilst having a narrowing pool of workers for SMEs to complete their inundated workload .
Furthermore , Brexit has lengthened the supply lines for
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a number of core supplies from Europe . A significant majority of materials required by UK trade and construction are manufactured or processed in mainland Europe . As the pandemic swept the continent almost all major countries suffered shortages in stock ; now however , manufacturers are refilling the supply chains that are closer to home first , with the UK falling to the back of the queue .
While this should have eased over time and it is encouraging to see a number of efforts to move material production to the UK , the enduring ‘ pingdemic ’ is exacerbating these fears . This has led to further hurt for SMEs in the trades as larger companies have been able to purchase
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these products at higher prices , to the detriment of their smaller competitors . With fewer sub-contractors to choose from too , the forced isolation of hundreds of thousands of Brits is further compounding the issues faced by SMEs in the trades .
Ben Dyer , CEO of Powered Now , discusses the difficulties
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that are on the horizon for smaller businesses in the trades :
“ Higher demand for construction and trade services has a real-world trickle down to small and medium trade businesses . However , we are very worried about the implications of stress on the UK supply chain , which is being further compounded by the ‘ pingdemic ’. We want everyone
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to be safe , and therefore believe the track and trace scheme to be necessary . However , we would echo calls from the CBI requiring the government to have more of a sure-footing on free tests available to businesses , along with mask wearing in certain scenarios .”
www . powerednow . com
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