Challenging Times

Unless you have been living under a rock for the last two years you will be aware that the cost of living crisis has hit the economy hard, and continues to do so. The construction industry has been in a downward spiral since the end of the pandemic. Material prices have plummeted and are not far off pre pandemic rates, and although many will see this as a positive it has not been widely reported and the perception for many is that prices are still sky high. However this does not outweigh the increases that have hit business such as wages, general running costs, insurance and energy to name just a few.

Many families are struggling to make their income cover their general living expenses. Increased interest rates have meant mortgage repayments and debt repayments in general have increased significantly putting pressure on the basics like food shopping, heating, selfcare and the cost of keeping much loved pets. This has meant any ‘free income’ has reduced or disappeared all together. Families are weighing up whether they can afford to do projects, move house, go on holiday or add money to savings. The current crisis is more than just “tightening the belt” and this has major implications for everyone in business.

To compound this the UK weather has also not ‘played ball’. We are in July yet summer hasn’t even really started. Good weather can create a ‘feel good factor’ but with this element of joy missing many people are feeling rather down and out and spending within the UK economy has slowed.

I recently listened to the blog of a construction company based in London. he said “companies in this sector are treading water. You can aim for but you probably won’t get growth this year, survival is key. If you are treading water and you are surviving your doing well. Whoever comes through the other side will have learned a lot and should give themselves a pat on the back.” It seems to me that its a bit taboo to talk about the struggles, but we must. Many feel it will have an adverse effect on their business if they do. To other business owners reading this blog please realise that its not just you. Those sleepless nights worrying about cashflow and paying suppliers are shared by many. It can be a dark place lost in your own thoughts but remember this, you are NOT alone. Have that cup of tea with others, talk about the struggles, talk about your aspirations and why you set up your business in the first place. Reflecting on your original ideas can reinvigorate you to ‘just keep swimming’. Go through your outgoing with a fine tooth comb and make saving where you can (easier said than done I know). Try ideas that are a little outside the box, especially when it comes to promoting your business to the world.

Remembering that spending power is down for most consumers means that many businesses are changing their approach to sales. There are more DIY’ers giving things a go, there are landscaping companies offering finance to spread the costs and many others have ramped up their social media presence to showcase what they can offer.

To summarise; conditions are the most challenging I have seen in more than a decade simply because consumer spending ability is down and other costs are up. So as a potential customer reading this blog and you are thinking of putting off the big project, we understand why. However do consider those smaller ones, they all help business to get through the tougher times. Prices are the lowest I have seen since covid and if you have the budget its a good idea to spend it now, there is value for money to be had, quicker lead times for trades and a real attentiveness from businesses on the customer service side. Now the new Government has come in we will see if it changes for the better, lets hope so.

Please not these blogs are my own personal opinion and are not all grounded in fact