- 04 Jul
Construction Sector Reports Worst Month In Over A Decade.
Construction firms, including house builders, have reportedly suffered their worst month for more than a decade. This could be causing a number of firms within the sector to seek funding support.
Construction Sector Reports Worst Month Since April 2009
An article in the Guardian (2nd of July 2019) reports that the IHS Markit/CIPs Construction Purchasing Managers index fell to 43.1, the lowest since April 2009. A figure Below 50 apparently shows the market to have contracted.
Retaining Staff For A Post Brexit Boom?
Firms are apparently blaming the Brexit crisis for a lack of new work. There does seem to be a widespread feeling of uncertainty over how these negotiations will resolve.
Interestingly, construction companies are reportedly retaining staff as they await a conclusion to the Brexit talks, perhaps anticipating a boom post Brexit (in whatever form it finally takes).
The lack of new work, combined with this approach of retaining staff in preparation to the future, is no doubt causing cash flow pressures for a number of construction sector businesses. We have previously reported that we have seen several construction sector firms within our pipeline, which could be as a result of companies within the sector needing additional help to get through this period of uncertainty.
Funding Support For Construction Companies
There are funding sources available that specialise in financing construction sector projects. Receivables can be unlocked using this type of funding, and the proceeds can be used to finance costs such as staff payroll. This could help you retain staff in the run up to Brexit, so that you can capitalise on future growth post Brexit.
If you need help in the run up to our exit from the EU, speak to Sean on: 03330 113622 about how he can help you unlock the proceeds of sale that are currently tied up in your unpaid sales transactions. Even if your invoices are for stage payments they may still be able to be funded by construction sector specialists on our panel of funders.