Tradesmen at recession breaking point
Aug 11 2009
Under pressure
A large proportion of tradesmen (plumbers, electricians and carpenters) don’t expect to be in business by the end of the year.
More than two fifths (42 per cent) say they will not survive if tough conditions continue, according to a new survey by insurance comparison website SimplyBusiness.co.uk.
Some 80 per cent report that people are spending less, while 70 per cent say customers are haggling down prices.
Tony Deacon, chief executive of SimplyBusiness.co.uk, says:
‘Tradesmen are in the eye of the storm. Financially, times have never been tougher and it’s no surprise that the cracks are starting to show.’
Of the 200 surveyed, 97 per cent believe that customers are unfairly squeezing their profit margins. On average customers are paying invoices 35 days late, says the survey.
According to figures from debt management company ClearDebt, self-employed people have seen their incomes fall by nearly ten per cent since last year.
Comment by Steve Lauri
Sunday 16th August 2009I am running a heating / plumbing and solar thermal business in the North West, we are constantly under pressure each day to price match against cash in hand or no vat quotations. This is a buyers market and prices will continue to drop and profit becomes a fantasy! Let's hope some sanity returns in time for the winter heating season and our that Government starts to make a move to save the Planet with Carbon reducing loans that work for the everyday general public customer, we can only live in hope?
Report this comment
Comments [1]