The construction industry is a traditional measure of economic growth. Generally, when it’s doing well, the economy is doing well. The latest figures for some parts of the construction sector make grim reading, however. This might lead you to think that SMEs must be in a pinch as well. But this isn’t true.

Some very encouraging recent figures are actually showing that UK SMEs are in a better place than they have been for quite some time. Let’s delve into the numbers and see what’s happening.

Big Firms Flounder, Small Firms Prosper

The collapse of Carrillion came as a shock to many – the government included. The collapse of Carillion had a big impact on the many state given contracts it was responsible for, but not on the bedrock of the construction SMEs. Indeed, SMEs in the construction sector have seen their order books fuller than they have been for a long time.

Small firms have long learned to adapt and grow, largely locked out as they are from the public sector and housebuilding arenas by so-called ‘Super Firms’. And only 10 percent of construction sector SMEs are actively considering entering this market. What they are focusing on is small, residential builds, and this is what has become the domain of SMEs in the construction sector.  

The Broader Picture

Outside of just construction SMEs, the outlook for UK small business is very encouraging. More new research has found that optimism amongst smaller business is at its highest level for 45 years. At the same time, small businesses reporting low sales have also plummeted to a historic low.

This is due to a combination of factors. Newly implemented tax laws are making their positive effects known, and stronger sales – teamed with gains in operating productivity – means UK SMEs are feeling more positive and agile than they have in recent years.

The report shows that small business capital outlay has risen three points – to 61 percent. Small businesses are assured enough in where they are and, very importantly, the future, to make investments. Indeed, 21 percent of SME owners are confident of higher sales volumes going forward, which is a rise of three points. 43 percent are planning on purchasing new equipment, and 27 percent are buying vehicles, both multi-point rises from the last index.

The main obstacle to many SMEs in taking advantage of this robust outlook is financing. The opportunities are there, and many SMEs simply need the capital to take advantage.  If this sounds like your business, contact us today – GIC Capital are experts in  experts in SME working capital and can help you get the finances in place your small business needs to succeed.