SME NewsDeath of a tradesman as customers squeeze life from business
42% of tradesmen fear their businesses may not survive to the end of the financial year.
With the housing boom, came a boom for tradesman of all kinds and standards. But today, as the recession continues, plumbers, builders, electricians, carpenters and others with trades are finding business increasingly tough.
Nearly 80% of tradesmen have seen customer spend decline over the last 12 months. What’s more the big squeeze is well and truly on.
Haggling down prices, less spending and late payments from customers have combined with tighter payment terms from suppliers to make life extremely difficult for many tradesmen according to a SimplyBusiness.co.uk survey released today.
Nearly three quarters (64%) have experienced a doubling of the number of customers defaulting on money owed for work completed.
Over a third (36%) have also experienced an increase in the number of complaints about their work.
Although there has been an upturn in home improvement jobs as fewer people are in a position to move house, tradesman seem to be taking the brunt of the construction recession.
Perhaps they should take some advice from one of London’s best known millionaire plumbers.
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Interesting article and can agree with these comments completely. Could you mention where the figures come from?
The figures came from a survey by SimplyBusiness.co.uk.
What’s the experience of your own plumbing and plastering business?
This is in contrast to the plumbers and decorators I know they say they have never been busier. According to them they say more people are doing up their houses rather than moving.