Contractors' profits rise in Q3
25 November 2016
An increase in profits has been revealed within a study conducted by the Electrical Contractors' Association (ECA) for the third quarter of this year.
Just over 80% of electrical and building services engineering business said their turnover had risen or stayed the same over this period.
The findings are particularly significant as the survey covers the three months following this year's Brexit vote, says the ECA, with companies experiencing "modest" pre- and post-referendum impact.
Favourable results for Q3 were recorded by businesses of all sizes, although micro companies (those with a turnover of less than £200,00) showed a slight downturn.
Additional results showed that 31% of firms expect a rise in turnover for Q4, which is 11% less than the ECA survey for the same period last year.
ECA CEO Steve Bratt said although the survey showed companies remained "broadly confident" about their prospects, those included typically feel negative effects after others in the supply chain.
“In addition, the survey shows that the expectation for business is down for the final quarter of the year, and members are already reporting increasing prices of key materials and equipment.
This means that 2017 may present even more challenges to profit margins," he said.
The Building Engineering Business Survey, which is held in association with Scolmore, was sent out to ECA members in early October this year and the response rate was the highest in five years.