{"id":10045,"date":"2014-09-24T08:28:05","date_gmt":"2014-09-24T08:28:05","guid":{"rendered":"http:\/\/www.adjacentgovernment.co.uk\/?p=10045"},"modified":"2018-08-21T11:13:14","modified_gmt":"2018-08-21T10:13:14","slug":"construction-sector-finance-problems","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/plant-equipment-supplies-news\/construction-sector-finance-problems\/10045\/","title":{"rendered":"Construction operating with finance problems"},"content":{"rendered":"<h2>Financial giant KPMG has warned that some construction businesses are attempting to operate with too little cash to keep them afloat.<\/h2>\n<p>Falling profit margins has led to some construction businesses running with unsustainable levels of cash.<\/p>\n<p>Research from <a href=\"http:\/\/www.kpmg.com\/uk\/en\/pages\/default.aspx\" target=\"_blank\" rel=\"noopener\">KPMG<\/a> revealed that the average margin companies were operating at in the sector in 2013 was 1.2 per cent.<\/p>\n<p>Richard Threlfall, the UK head of infrastructure, building and construction for KPMG said: \u201cConstruction contractors have been struggling with some of the most difficult market conditions ever encountered and even now \u2013 with all evidence pointing to sustained recovery \u2013 the industry faces real profitability challenges.<\/p>\n<p>&#8220;Current margin and cash levels are unsustainable.<\/p>\n<p>\u201cWith subcontractor rate increases and labour market shortages largely outside of contractors\u2019 control, it is critical they continue to focus on improving their own efficiency.&#8221;<\/p>\n<p>KPMG also stated in a <a href=\"http:\/\/www.kpmg.co.uk\/creategraphics\/09_2014\/Construction_Barometer\/index.html#10\/zv \" target=\"_blank\" rel=\"noopener\">&#8216;Construction Barometer&#8217;<\/a> report that an increase in the number of orders in construction should improve the financial health of the industry over time.<\/p>\n<p>The report stated that: &#8220;The 2013 order books are up on previous years, and &#8230; the committed and planned spend in the sector over the coming years is significant, with some \u00a345 billion anticipated in 2016 in infrastructure alone.<\/p>\n<p>&#8220;Ultimately, it will be the composition of these orders, both in the margin they deliver and their timing, that will drive change to the bottom line.&#8221;<\/p>\n<p>Difficult trading in the construction industry is expected for at least the next year before &#8220;the growing demand in infrastructure&#8221; starts to show increased profit margins and improvements to &#8220;the bottom line&#8221;.<\/p>\n<p>Threlfall concluded: &#8220;With good forward planning, strong businesses should be investing now in their supply chain and technology to take advantage of the \u00a345 billion a year tidal wave of future work.\u201d<\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Financial giant KPMG has warned that some construction businesses are attempting to operate with too little cash to keep them afloat. Falling profit margins has led to some construction businesses running with unsustainable levels of cash. Research from KPMG revealed that the average margin companies were operating at in the sector in 2013 was 1.2 [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[308],"tags":[676,431],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-10045","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-plant-equipment-supplies-news","7":"tag-construction","8":"tag-plant-equipment-supplies"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Construction operating with finance problems<\/title>\n<meta name=\"description\" content=\"Financial giant KPMG has warned that some construction businesses are attempting to operate with too little cash to keep them afloat.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/plant-equipment-supplies-news\/construction-sector-finance-problems\/10045\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Construction operating with finance problems\" \/>\n<meta property=\"og:description\" content=\"Financial giant KPMG has warned that some construction businesses are attempting to operate with too little cash to keep them afloat.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/plant-equipment-supplies-news\/construction-sector-finance-problems\/10045\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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