Escalating economic worries, higher prices and tighter spending will combine to make 2008 a tough year for building contractors, according to business analyst Plimsoll Publishing.

Senior analyst David Pattison said: “With uncertainty in the economy, some will want to sit tight and do nothing radical.

“Others will need to cut costs quickly to weather the possible storm. But others, who have built up cash reserves, may be looking at this period of difficulty to make acquisitions at a bargain price.”

The average growth in the building contractors’ sector in 2007 was 9.2%. However, 34% of companies saw their sales decline. Plimsoll forecasts that firms looking to set budgets for 2008 should aim for about 6% growth.

Pattison said: “With a combination of imagination, forward thinking and opportunity spotting, this can be beaten.”

Source

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