PRO INSTALLER DECEMBER 2016
@ proinstaller1
41
PRO BUSINESS
BUSINESS CONFIDENCE IN NEGATIVE TERRITORY
The Federation of Small Businesses ( FSB ) has found that UK small business confidence has continued to fall , dipping into negative territory for the first time since 2012 . Business owners feeling confident are outnumbered by those that feel the opposite . However , FSB found many immediate economic conditions improving , with small firms reporting greater access to finance , a rise in new employment and reduced spare capacity in their businesses . In data gathered since the UK ’ s decision to leave the EU , the FSB Q3 Small Business Index ( SBI ) found business confidence in negative territory ( -2.9 ). This is the second largest yearon-year fall in confidence in the Index ’ s history , with the largest drop occurring in the previous quarter of 2016 ( Q2 ). Confidence has now fallen for the last three quarters in a row . Despite this , FSB found many positive signs of small businesses proving resilient and getting on with the job in hand , in spite of a fragile economic outlook in the longer term , spurred by political uncertainty caused by the outcome of the EU referendum . Many firms may have ‘ priced-in ’ the impact of the EU referendum result in advance of the vote , with others looking for immediate growth opportunities . The share of small businesses aspiring to grow over the next 12 months also ticked up this quarter , now at 55 per cent , the highest level since the end of 2015 . On the flip side , the share of businesses expecting to downsize , close or hand on the business fell to 11 per cent . Small businesses have started to take on new staff , with a net balance of seven per cent of small firms report increasing headcount this quarter . This is the first time that smaller companies reported an increase in hiring this year . Small businesses also expect this positive trend to continue into the final quarter of 2016 . Credit availability has continued to improve . The SBI credit availability and affordability indices stand at their highest levels since records began at the start of 2012 . Small exporters ’ performance has also improved , backed by the weakness in sterling , with more businesses expecting this to rise further in the next few months .
Mike Cherry , FSB national chairman said : “ There is no doubt that the political shock of the Brexit result took place at a time of weakening business confidence . For the first time in four years , confidence is in negative territory . This persistent downward trend in UK business confidence reflects underlying issues that predate the Brexit decision . “ Small firms are resilient and will survive the current fragile economic outlook , but to avoid an economic slowdown this data should be a wake-up call for our elected politicians . The UK small business community seeks key domestic policy decisions if we are to grow , invest , export and to create jobs .”
LIVING WAGE CHALLENGE
Research from the Federation of Small Businesses ( FSB ) found small firms are meeting the challenge posed by the new National Living Wage ( NLW ) with the majority ( 59 per cent ) absorbing the costs by taking lower profits . Following the introduction of the new wage in April 2016 , small businesses have demonstrated their resilience in meeting this challenge , but some businesses have struggled to do so . FSB ’ s quarterly business survey found that 47 per cent of small businesses now cite wages as the main contributor to the rising cost of doing business . FSB is calling for the Low Pay Commission to be given flexibility on how to meet the government ’ s NLW target of 60 per cent median earnings by 2020 . FSB wants this target to be adjusted if it becomes clear the economy cannot bear the rapid pace of NLW increases . The NLW is currently projected to rise by £ 1.85 per hour over the next four years , reaching £ 9.05 by 2020 . FSB research found that the majority of small businesses were already paying all their staff above the new NLW of £ 7.20 an hour . Despite this , however , about a third of businesses ( 32 %) said the new wage has led to some increase in their wage costs and further one in five ( 19 %) said labour costs went up significantly as a result of the new wage .
‘ labour costs went up significantly ’
Of the businesses that report increasing labour costs from the NLW , the majority of them ( 59 %) absorbed the increased cost through reduced profitability . However , some firms have had to take other action in order to stay afloat , such as increasing their prices ( 35 %), reducing staff hours ( 24 %), cutting investment ( 23 %), and recruiting fewer workers ( 16 %). Some businesses also sought to meet the increased cost through improved efficiency ( 13 %).
www . fsb . org . uk
Digital Built Britain will transform construction
The next phase of ‘ digitisation ’ in the construction sector has been announced , and it is set to revolutionise every aspect of the industry as it has done in other areas .
‘ reductions in project costs ’
‘ Digital Built Britain ,’ first announced in the 2016 budget , will deliver reductions in project costs and carbon emissions , while improving productivity and capacity by using intelligent Building Information Modelling ( BIM ), sensing technology and secure data and information infrastructure .
Eventually , the aim is that BIM should help citizens make better use of the transport , water , communications and energy infrastructure already in place . Ground-breaking work on data infrastructure within Digital Built Britain will help to deliver other government digital objectives , including building successful UK sectors in smart cities , cyber and physical security and sensors through the ‘ Internet of Things .’ The BIM Task Group , in association with the British Standard Institute ( BSI ), published ‘ BIM Level 2 Guidance : UK edition ’ at the end of November . This guidance is online at http :// bim-level2 . org / en / guidance /.
www . digital-built-britain . com