JANUARY 2020 | 3
News
Read online at www.proinstaller.co.uk
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, trades-
people 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. But a new
investigation by Confused.
com reveals that some cit-
ies in the UK have a better
chance of thriving. And this
could help tradespeople
overcome the confusion
and overwhelming deci-
sions they must consider
when starting up a new
business.
There are 7,649
‘ trade
businesses
in London ’
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 Most successful
trades
For anyone looking to
start a trade business, the
Midlands is a promising
option. Leicester, Notting-
ham and Birmingham are
all within the top six areas
based on business success
rate.
In particular, Leicester is
revealed as the city with
the highest rate of success
with carpenters, gardeners
and painter and decorators
all particularly successful
here. According to the data,
less than 10% of all trades
based in the city fail, on
average.
The UK’s capital emerg-
es as the trade start-up
hub and most compet-
itive 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), suggest-
ing 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. The study reveals that
the most secure trade
professions are electri-
cians 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 install-
ers, 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 busi-
nesses 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.
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
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 close-
ly by 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 gar-
deners 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 con-
tractors 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 car-
penters (£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, mo-
toring 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 busi-
ness 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 becom-
ing a tradesperson outlines
everything you need to
know when looking to
start a career in the trade
industry.”
You can find the full list
of trade start-ups and
regions at https://www.
confused.com/van-
insurance/trade-survival-
index