How was the past year for you business-wise, what is the outlook for 2016 and how does this compare with your competitors and the rest of the industry? To give you a benchmark, F. Ball commissioned independent research group, GBP to survey flooring contractors across the UK about how their businesses are doing compared to the same time last year, and what they expect for the coming year.
General mood positive
Despite all the gloom and doom we hear from the main news channels, focusing on ‘the global slowdown’, oil prices plummeting and a general sense of unease in stock markets around the world, this is not reflected in the mood of the UK’s flooring industry.
The results of our survey indicate that 2015 was a significantly more prosperous year for contractors than 2014, and the outlook for 2016 is increasingly positive.
As busy or busier
90% of total respondents indicated that they were as busy or busier than the same time last year, up from 82% in 2014. And while only 16% of respondents said that they were “significantly busier” than a year ago (compared to 32% in 2014), it is clear that business has continued to improve for contractors in 2015.
This trend is not entirely uniform across the country, however. The picture in the south of England was markedly more positive than elsewhere in the UK, with 94% of respondents saying they are as busy or busier than the same time last year.
Regional differences
The North and Scotland also showed a very welcome improvement in business, with 88% of contractors saying that they were as busy or busier than last year, and 22% stating that they are significantly busier than the same time in 2014.
By comparison, just 75% of contractors in the Midlands and Wales stated that they were as busy or busier than the same time last year, with no respondents saying that they were significantly busier, and a substantial 25% stating that they were less busy than a year ago.
Despite regional differences, the overall picture is positive. 90% of contractors surveyed stated that they were operating at over 70% capacity, significantly more than the 78% who stated the same in 2014.
New business worries ease, attention turns to recruitment
When the contractors were asked what difficulties they expected to face next year, the answers were markedly different to those given in 2014. When contractors were asked in 2014 what difficulties they anticipated for the coming year, 26% said lack of business and 16% said cash flow.
In 2015, just 10% of respondents said that lack of business is expected to be a problem, and 12% said cash flow. The leading problem anticipated by contractors for 2016 is staff recruitment (18%). With more contractors assuming that recruitment will be a problem in 2016, it is unsurprising that only 20% of respondents said that they expected to be taking on new staff in the near future.
Market growth in the right direction
Overall, the key message from the survey is that 2015 was a positive year for flooring contractors. Business activity was up when compared to 2014 and, while some regions were performing better than others, the vast majority of contractors were as busy or busier than they were 12 months previously. In the North and Scotland, a sizeable proportion of contractors were substantially busier than a year ago.
As business has improved, concerns such as finding work and maintaining cash flow have abated, while recruitment has become a more prominent issue.
Does the F. Ball survey reflect your current situation or do you see things differently? Let us know by clicking on the contact button in the menu bar at the top of the page and filling in your details and feedback.