Capture New Commercial Construction Opportunities

The Office for National Statistics (ONS) has released positive data for the construction industry, indicating a period of significant growth ONS. Construction output reached a record high of £15.1 billion in May 2022, reflecting a 1.5% increase and surpassing all previous figures since the ONS began tracking data in 2010 ONS.

Construction Industry Experiences Record Output and Strong Outlook

(ONS, May 2022)

This growth trend extends beyond a single month. May marks the seventh consecutive month of output expansion, primarily driven by a surge in new commercial work (2.8% increase). Private commercial projects are leading this charge, with a notable rise of 12.1%, followed by private housing at 7.2% ONS.

While concerns regarding rising material costs and the recent VAT increase on red diesel remain, construction companies appear optimistic. Order books are healthy, and new contract opportunities are plentifl, as evidenced by resources like https://www.glenigan.com/

However, inflationary pressures and supply chain disruptions continue to pose challenges. To fully capitalize on this growth period, construction businesses may need to strategically invest in productivity and efficiency enhancements. This could involve acquiring new equipment, expanding their workforce, or securing materials to mitigate potential project delays.

The primary obstacle? Affordability. Businesses are understandably hesitant about the upfront costs associated with such investments, which could encompass new equipment, vehicles, staffing, or materials.

Asset financing presents a compelling solution. It allows for the cost of essential tools, plant, and vehicles to be spread over fixed monthly payments. This approach preserves existing credit lines and shields businesses from the impact of price inflation. Whether the requirement is for heavy-duty equipment for large projects or smaller tools and vehicles, asset finance offers a way to secure necessary resources without straining finances.

In conclusion, the construction industry is experiencing a period of exceptional growth, presenting a significant opportunity for businesses (ONS, May 2022). By strategically utilizing asset financing to address affordability concerns and invest in productivity, construction companies can capitalize on this market boom and ensure their long-term success.

How can Portman support the Construction Sector?

Asset finance can enable you to get the tools, plant and vehicles you need now to put you in a stronger position to obtain new contracts whilst spreading the cost with fixed monthly payments, preserving existing credit lines and avoiding price inflation. Whether you need specialist equipment for large-scale work such as cranes and high-powered plant, or smaller equipment and commercial vehicles, we can help you get it in a way that’s affordable.

Enquire about Asset Finance here.

For example, if you were to finance a new JCB 16C-1 Canopy Excavator worth £22,250 over a 6-year term, you could pay as low as £383.05 per month with an annual flat rate of 3.9%.

Getting a business loan can also cover operational costs and expenses, boost cashflow and help to buy products and materials. You can borrow anywhere between £10,000 and £1m with secured fixed monthly payments which can help you grab opportunities that are bigger than the potential repayments. With supply chain difficulties causing delays and disruptions, a cashflow loan could also help you bridge any gaps between invoices and getting paid.

Enquire about business loans here.

In recent times, we’ve been helping finance commercial vehicles, plant and scaffolding equipment to businesses in the construction industry. We’ve also helped many companies secure business loans

Portman can help SMEs finance most asset types and loan purposes. With access to over 40 lenders, and as a lender ourselves, we can offer finance that others may not. We consider all credit histories and look to provide solutions quickly; in some cases, delivering approvals within hours.

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