ADVERTORIAL BIBBY FINANCIAL SERVICES
MEANS VERSUS MINDSET Building your business in cost-pressured times requires smart financial planning, says Bibby Financial Services
B ibby Financial Services (BFS) has been providing funding for more than 40 years and specialist construction finance for over two decades, so it is important to us that we stay connected to what small and medium-sized (SME) businesses need. The construction sector is battling unprecedented cost pressures. In our recent survey of almost 250 construction businesses, we found that: ● 70% said inflation and high costs were their biggest challenge; and ● 72% stated rising material costs are putting a strain on profitability.
saw as the biggest opportunity for their business in the next six months, almost 60 per cent said “attracting new customers”. But businesses need the means to match the mindset. Taking on new customers means negotiating new contracts, which almost half of construction survey respondents said are difficult or very difficult to understand. It also means having the cash flow to absorb more upfront cost to service these new contracts, whilst meeting existing operational costs, paying subcontractors and managing overheads. Lengthy contracts and complex applications for
aspiration to grow his business, “otherwise what’s the point of being in business in the first place”. In other words, despite all of the headwind external factors, there is still ambition in construction. Indeed, when we asked survey participants what they
The current high-cost environment and labour shortages certainly pose challenges, but they do not need to completely put the brakes on business. As a client in the groundworks sector told us recently, he still has an
Key challenges for construction sector SMEs
70% 34% 28% 23%
High costs / inflation
Cash flow Customers taking longer to pay
Supply chain disruption
Source: SME confidence tracker research January 2025
30 Master Builder
www.fmb.org.uk
Made with FlippingBook Online newsletter maker