Good News for Builders’ Merchants: Builders can Expect more Work

With average household incomes and the size of the construction sector now returned to pre-recession levels, the UK construction industry and builders’ merchants are finally becoming optimistic about the future.

28th March 2015

A survey of 12,000 builders and installers found that 54% of respondents expected a considerable increase in their workload this year, with an additional 37% expecting to take on some extra work during 2015. This is great news for builders’ merchants, who should also expect more work coming their way.

However, LB Roof Windows’ survey also held a note of caution. Only a third of builders and installers thought that their profit margins would improve significantly during this calendar year, with approximately half of respondents expecting a smaller increase in profit margins.

Profit margins are under threat from rising costs – three-quarters of builders expected the price of materials to increase during 2015. Builders’ merchants will have to contend with rising costs from their suppliers, too – even with the recent fall in oil prices, inflation continues. For merchants, there’s a constant battle to maintain trade customers and try to absorb a proportion of rising supplier costs to avoid losing business.

Stock control and discount management play key roles in your finances.Software for builders’ merchants gives you total visibility and control over these functions, allowing you to identify areas of improvement, problem products and future areas of growth. Trader software automatically shows you agreed credit limits and past purchases from trade customers at the point-of-sale, enabling you to make the most of trade custom and keep track of spending patterns. For further information on Trader, contact the Integrity team. 

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