Top Service News
Building Materials Statistics- August Insight
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The August statistics for building materials and components released by the Department for Business & Trade provide valuable insights into the current business environment. Let’s break down what these statistics mean for your business:
Price Trends:
The statistics show that 30% of trading businesses advised that they have seen an increase in prices for goods and services that they purchased during the month of July. This has slowly decreased and is the lowest percentage reported since the peak 50% in March 2022. For your business, this suggests that the pressure of price increases might be easing, which could positively impact your procurement costs.
Turnover:
As we continue to make our way through September, 18% of businesses expect their turnover to increase this month. Whilst this is a steady increase from the 15% of businesses expecting their turnover to increase last month (August 2023) 55% of trading businesses still expect their turnover to stay the same for the month of September 2023.
On the subject of turnover, 17% of trading businesses reported that their turnover was higher in July 2023 when compared to June 2023. This is the first increase reported since March 2023. An increase in turnover can be a positive sign for your business, indicating potentially improved demand or market conditions.
Domestic Demand:
An increase in domestic demand has also been reported for the month of July 2023 by 11% of trading companies when compared to June 2023. An increase in domestic demand can present opportunities for your business to expand its customer base or sales.
Future Price Increases:
Looking ahead to September 2023, 16% of trading businesses anticipate raising their prices, with 24% attributing this decision to rising energy prices. It’s important to consider how these potential price increases could impact your business, both in terms of costs and customer demand.
In summary, while there are some positive indicators such as decreasing price increase reports and an increase in turnover, the industry still faces challenges, particularly related to rising energy costs.
Reviewing your credit management practices will without doubt support your business by assessing the risk of extending credit facilities & increasing cash flow.
- Research the best credit information provider for your industry. Having the most up-to-date information and knowing other supplier’s experiences with payments will allow you to make the most informed decisions.
- Taking action on any overdue invoices sooner rather than later, will increase cash flow and reduce the risk of an insolvency occurring before your payment is received.