NEWS EXTRA
UK TRADES SEE UPSWING IN DEMAND DESPITE CHALLENGES
There are shortages and cost increases, but respondents to the bi-annual Travis Perkins RMI Index remain positive about their future workloads.
OVER 1500 TRADESPEOPLE across the UK are optimistic on their near-term prospects.
That’s according to the results of the latest Travis Perkins RMI Index, which found customers were seeing with increased demand from homeowners for projects designed to reduce energy consumption offsetting the pressures they are experiencing as a result of rising fuel costs. Customers from Travis Perkins, Keyline, CCF and Toolstation businesses were surveyed via email in April and asked to look ahead to the next two months. The responses received represent a significant cross section of the UK market and span a wide variety of company sizes, from sole traders through to companies employing up to 100 staff. The majority (56%) are sole traders while nearly four out of five employ no more than three people.
Over nine in ten (93%)
respondents to the survey, believe their workloads will increase or remain the same over the next two months, while over two thirds (61%) expect their materials purchasing requirements to increase.
Furthermore, 71% of respondents, who represent a snapshot of the nation’s builders,electricians, plumbers, joiners and other tradespeople are seeing an increased level of demand in the next few months from homeowners for projects designed to make their homes more energy efficient, such as improved insulation for cavity walls, lofts, walls and ceilings as well as heat pumps and renewable energy sources. The impact of rising petrol and diesel costs has also altered how the UK’s tradespeople are operating, with eight in ten saying they have changed how they do business. This includes
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Not all homeowners have completely embraced the concept of reducing energy consumption in the home, however, as 31% of tradespeople stated that they have seen little interest in these sort of projects.
passing on higher fuel costs to customers when pricing projects (39%), choosing to work more locally (31%), and requesting that products be delivered rather than collected (29%).
Tradespeople are also increasingly turning towards technology to help them combat higher prices at the pumps, with 12% saying that they are holding more virtual visits with clients instead of visiting them in person. 6% also said that they have decided to invest in more fuelefficient cars, vans or lorries. The survey is the fourth full publication of Travis Perkins’ RMI Index following the inaugural report published in August 2020. Of the 1,446 people surveyed, 95% expected their workloads to either remain the same, increase or even greatly increase over the next two months.
Nearly half (48%) of all respondents believe workloads will increase over the next two months while 45% expect it to remain unchanged with only 7% forecasting a decline.
This sentiment was broadly mirrored by respondents’ assessment of their likely materials needs with 61% forecasting an increase in their materials requirements over the next two months and 33% expecting no change. Only 6% expected to see their materials requirements decline.
Tradespeople are beginning to see increased interest in projects specifically designed to reduce energy consumption in the home with over two thirds seeing either a little (51%) or a lot (18%) of interest in these sorts of projects.
Travis Perkins CEO Nick Roberts says: “Since we published the last report in August 2021 the uncertainty caused by the pandemic has been replaced with other well documented challenges, such as the rising cost of living, inflationary pressures, labour shortages and supply chain disruption, which are impacting the construction sector and weighing on the economy more generally.
“As a result, our customers’ resilience continues to be tested. Despite this, it is clear from our findings that the UK tradespeoplewe surveyed are optimistic about their future workloads.
“Whilst the extent of the disruption associated with the invasion of Ukraine is unknown, the Construction Leadership Council has outlined that some direct and indirect impacts on the UK construction sector will be significant, not least in terms of energy costs. “The nation’s tradespeople are not immune to this disruption, so in this report we took the opportunity to understand how they are coping with some of the potential impacts, including rising fuel costs and whether they are seeing increased demand for works designed to lower end customers’ heating bills. “Our findings suggest UK tradespeople are adapting their businesses in line with the constantly evolving market, so they can continue to serve customers in new ways, under difficult circumstances.” BMJ
www.buildersmerchantsjournal.net May 2022
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