Businesses look to ‘hold on’ through coronavirus storm
A new engineering services sector survey shows that three-quarters of businesses (73 per cent) expect their turnover to fall in the second quarter of 2020, compared to the first quarter.
Looking further ahead to the third quarter of 2020, a similar number of businesses expect turnover to fall (compared to the start of February 2020 – selected as a reference point before significant coronavirus impact). Of these, almost one in four businesses (23 per cent) expect a fall in turnover of 50 per cent or more.
ECA CEO Steve Bratt said, “Although construction has continued to operate through the crisis, at least in part, it is no surprise to see the reductions in turnover and the challenges to business in remaining viable.
“However, the figures also demonstrate our sectors resilience and importance and we shouldn’t forget that in the medium and longer term many of the challenges we face as a nation will provide growth opportunities.”
These figures are the biggest ever anticipated drop in turnover since the sector business survey began, over a decade ago. One in 20 respondents (five per cent) reported that by the end of Q3 this year, their business ‘may not be viable’, while a further 10 per cent said they were unsure about viability.
Read the full Building Engineering Business Survey quarterly report here.