The Colour of Money

We have all seen the papers and watched the news and they are all saying doom and gloom, but only 19% of construction companies are fearing the worst. Overall the construction industry seems optimistic about the future. Construction order books are full for 2008 and with the shortage of housing still a major concern within the UK it looks to still give good returns for companies working in this sector.

For those companies working in the commercial and private housing sectors its looks slightly bleaker with a sharp drop in people buying properties and with banks offering less attractive mortgage products they will do well to escape the current conditions unscathed.

On the other hand a plus side for property maintenance companies as more and more people opt for rented accommodation. With landlords having to keep up maintenance on all their properties we could see a sharp rise in this sector.

Most at risk are Subcontractors that have paid for materials and labour up front and are awaiting payments from companies. Banks are not lending money as freely as they have been, so will be reluctant to lend money to bridge this gap.

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