Contact: Andrew McLindon
Wilson Hartnell Public Relations
+353-1-669 00 30

Contact: Claire Quinn
Deloitte
PR Executive
+353 87 6825766

More than 75 per cent of builders’ providers are predicting sales growth in the next 12 months, with around 40 per cent estimating sales will increase by over 10 per cent, according to a survey by Deloitte.

The survey also found that trade sales account for 74 per cent of turnover in owner managed builders’ providers, with DIY sales making up 26 per cent.

These findings demonstrate that confidence in the sector is strong, mirroring the current buoyancy in the construction industry in general. “These findings are in line with current market conditions and future growth expectations across the construction business. This is obviously being helped by factors such as the record number of house builds, low interest rates, growth in disposal incomes and the release of money from SSIA accounts,” said David Carson, Partner, M&A Transaction Services, Deloitte.

However, builders’ providers say they are facing a number of commercial and financial challenges.

According to the survey, the top three commercial challenges are customer retention, finding suitably experienced employees, and the potential saturation of the market. While Health and Safety wasn’t in the top three, it was still seen as an important challenge by over half of the respondents.

The study also found that builders’ providers believe the three largest financial challenges facing them are maintaining gross margins, controlling overheads and employee costs.  Maintaining gross margins was identified as the most significant challenge by over half of the respondents.

In terms of future issues, approximately half envisaged moving to out of town sites in the coming years, with succession planning also identified as a significant issue likely to affect their business in the next five years.

Commenting on these results, David Carson said, “It is clear that while the outlook is good for the next 12 months, builders’ providers are also facing some serious challenges. They are being squeezed on their margins, while also struggling to hire and retain staff at sustainable pay levels. In order to remain competitive, builders’ providers will need to look at how best to manage their business growth and whether there are opportunities for further consolidation in the sector.”

ENDS