Survey reveals cautious optimism for next year

One third of companies polled in the ECA quarterly member business survey have revealed a higher turnover in the third quarter of the year than in the previous quarter. Only 15% saw a decrease in turnover, compared to 23% in the previous survey.

The figures validate optimistic predictions from members responding to previous surveys and the outlook is cautiously positive for the next 12 months. Members were evenly divided when asked whether they were optimistic (26%) or pessimistic (22%) about the next quarter’s turnover. However, when asked about the next year, confidence levels rose, with 37% expecting to see an increase in business and only 13% anticipating a downturn.

All 12 ECA regions said that they expected growth over the next year, with a particularly strong increase anticipated in the North and Greater London. The forecast in the Midlands and the West indicates that these areas do not expect change, in line with the previous survey.

Optimism is greater amongst larger firms, with over 50% saying they expected an increase in business in the coming year’s figures. This compares to only 25% of those with an annual turnover of under £100 000.

David Pollock, director of the ECA, says: “We are delighted to see that the positive members’ predictions in the previous survey have been realised. There is an overall optimism for the future in terms of year on year forecasts. However, after a strong last quarter turnover performance, short term projections for both turnover and enquiries seem to be slightly more cautious. Despite this, the survey shows the electrical contracting industry remains in a strong position to continue its growth.”