59
PRO INSTALLER SEPTEMBER 2013
PRO BUSINESS
@proinstaller1
LETTER TO THE EDITOR
Are you ready to profit?
Since the late stages of 2007 the UK construction industry and
the window and door market in particular has been waiting
on tenterhooks for signs of economic recovery, and there are
now signs we may finally be rewarded for our patience.
Most recently a market
survey from the Royal
Institution of Chartered
Surveyors (RICS) has
demonstrated a slow
but steady growth in
construction activity
during 2013, with a net
balance of 21% more
surveyors across all
regions reporting a rise
in workloads during the
second quarter.
The survey respondents
went so far as to say that
they expect an even greater
rise in activity over the
next 12 months, with 59%
predicting a continuation of
this rise in workloads.
Obviously any signs of
economic growth that offer
hope of a recovery in our
industry are welcome, but
we must also remain realistic. Yes, it is undoubtedly
good news that things look
less bleak than they did at
the height of the recession,
but it is unlikely that we
will ever see the market value reach the kind of heights
we enjoyed in years gone by
again.
However, we can prepare
ourselves to get the best
from the recovery. One of
the biggest problems we
currently face is profit,
the struggle for which has
unfortunately led, in many
cases, to a dangerous ‘how
low can you go’ situation.
The other problem is that
often companies put their
focus firmly on sales instead
of margin, failing to take
into account fixed costs
such as premises, wages,
machinery, tax amongst the
extensive list.
By taking a different
approach, we can be better
prepared to benefit from
market growth as and when
it occurs. It may seem like
common sense, but it’s
important to plan for profit.
After all, if you don’t plan to
make a profit, how can you
expect to make one at all?
There are simple steps you
can take. Set a minimum
profit target each week;
taking into account your
overheads; and stick to it.
Move jobs around if needs
be – some lower value
jobs actually have a higher
margin so try to get out of
the purely volume sales
focussed mindset.
Jim Moody,
Managing Director,
Tradelink