So how does this impact the construction sector? Since 2021, the construction sector has proved its resilience. Despite tough economic conditions, most construction businesses have had more work than they can manage – and even now, in this year’s survey results, we are seeing a good level of optimism, with many businesses continuing to manage cash flow and margins well.
That said, the report shows a definite drying-up of forward work for many construction businesses, who are well placed for the next few months, but may be suffering from a lack of work in around six months’ time. This is particularly the case for the residential sector and smaller construction organisations, where confidence is waning.
The way to deal with this uncertainty, is, as ever, managing finances and risk correctly. There will always be ups and downs in the economy, but strong financial and risk management, through both the good times and the bad, will be what sees our construction sector thrive. We hope you find this report useful. Our goal has been to not just talk about the trends and results, but also to give advice and tips throughout to help construction companies overcome the challenges highlighted in the report. Please do remember to reach out to your adviser if you find you are struggling with any of the issues discussed – or to harness any of the opportunities presented. Read the full 2023 BDO Construction Sector Report here.