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Latest survey shows supply chain confidence

13 March 2018

Despite the issues impacting the FM market, including Brexit and the Carillion collapse, a survey of hard service providers shows confidence in the market.

Conducted by the Electrical Contractors' Association (ECA), Building Engineering Services Association (BESA), SELECT and SNIPEF, it showed 85% of respondents expected turnover to grow or remain stable in this year's first quarter.

There was also a positive response to business conducted in the last quarter of 2017, with 80% of hard service providers stating that turnover had either increased or remained steady in this period.

Costs continued to be a concern, with 65% stating that material prices had risen.

An additional 50% of respondents further stated that they had seen costs for labour increasing in recent months.

Late payment is another long-running issue for engineering service providers, with more than half of companies responding to the survey stating that this had been experienced in both the commercial and public sectors.

A joint statement from BESA and ECA said the survey showed that the sector "is in confident mood", despite the uncertainties arising within the commercial, political and operational cost areas.

With the survey sent to respondents just one week prior to the Carillion collapse, the statement said the "true effect on the supply chain is yet to come through".

The survey was sent to companies in January this year and received 416 responses.

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