Builders providers predict strong growth

More than 75% of builders providers are predicting sales growth in the next 12 months, with around 40% estimating sales will increase by more than 10%, according to a survey by Deloitte.

The survey also found that trade sales account for 74% of turnover in owner-managed builders providers, with DIY sales making up 26%.

"These findings are in line with current market conditions and future growth expectations across the construction business," said David Carson, M&A transaction services partner in Deloitte.

"This is obviously being helped by factors such as the record number of house builds, low interest rates, growth in disposable incomes and the release of money from SSIA accounts."

According to the survey, the top three commercial challenges facing builders providers are customer retention, finding suitably experienced employees, and the potential saturation of the market.

The study also found that builders providers believe the three largest financial challenges facing them are maintaining gross margins, controlling overheads and employee costs. Maintaining gross margins was identified as the most significant challenge by more than half of the respondents.

About half of those surveyed envisaged moving to out of town sites in the coming years.