Research from the Electrical Contractors’ Association (ECA) shows the majority of electrical contracting businesses saw turnover hold in Q2 2014.
The ECA’s Quarterly Business Trends Survey (QBTS) revealed that 51% of respondents saw no change in turnover, an increase from 37% the previous quarter.
The number of members reporting an increase in turnover dropped to 27%, down from 43% in Q1 2014. Twenty three per cent of members reported a decrease in turnover, up three percentage points from the previous quarter.
Businesses with a turnover of more than £5m reported the strongest results this quarter, with none of the respondents reporting a drop in turnover. At the other end of the scale, those businesses with a turnover of less than £200k had a steady second quarter, with 67% of respondents reporting that their turnover had not changed during the period.
Members are optimistic about the next quarter, and the next twelve months. Seventy one percent expect turnover to hold or increase over the next quarter and 85% expect to see turnover stay the same or improve over the next year.
“This is a sign that our sector is seeing a real recovery and not a short term spike,” comments Steve Bratt, ECA Group CEO. “We’re beginning to see the key markets for our industry improve and start commissioning projects on a regular basis, but we’re not out of the woods yet. It’s still a good idea for companies to look at broadening their business base, and the ECA is happy to provide advice and guidance on this and other queries around issues of business development and management.”