Specialist contractors optimistic, State of Trade survey shows

Specialist contractors questioned by the NSCC are optimistic about profit margins and opportunities for work but skills shortages and poor payment practices continue to cause problems for the sector.

In the latest quarterly State of Trade survey from the National Specialist Contractors Council (NSCC), 18% of respondents said they were anticipating increased margins, a dramatic improvement on the figure of -27% recorded this time last year.

Tender prices also showed an increase, with a balance of 10% this quarter compared to 2% for this period last year.

This optimism was balanced with continued complaints about poor payment practices, with 78% of those surveyed reporting ‘pay-when-paid’ problems. Retention abuse, affecting 75%, was noted to be the most damaging issue for business.

Skills shortages were also highlighted, with 30% saying that a lack of skilled applicants, particularly for professional, technical, carpentry and flooring vacancies, could prevent them from bidding for work.