How Can Cambrian Help My Construction Company?
The construction industry is one of the key industries in the British economy both in terms of its value and the size of the workforce.
The construction sector rebounded promisingly after the initial hit of the Covid-19 pandemic.
The main driver is the residential property sector.
Why is the Construction Industry Important?
Employment
In 2021, there were approximately 2.2 million people employed by businesses in the construction sector in the United Kingdom, with 249 thousand people employed in businesses that employed 500 or more people. The sector employs over 9% of the workforce.
GVA
In 2021, the gross value added (GVA) of the construction industry in the United Kingdom amounted to over £122Bn. This is a 13% rise compared with £108Bn in the previous year.
Output
After a 14% contraction in 2020, British construction output is forecast to rebound by almost 15% in 2021 and to grow by more than 5% in 2022.
Economic Growth
One of the key indicators of economic growth is the buoyancy of the housing market. As the construction industry is the facilitator of the demand, its importance cannot be understated as a contributor to the overall success of the UK economy.
What Factors Are Affecting Construction Companies at the Moment?
Cashflow
Despite the construction boom at the moment, there are still associated risks with its success.
In January 2022, a report by financial analysts Begbies Traynor stated that more than 75,000 construction firms could be at risk of collapse due to a mix of inflation, cash-flow squeezes and shortages of materials.
Cashflow has always been a significant impediment in the completion of building projects. This is due to the process of staged payments, whereby payments are only released when a stage of the build has been completed and the work has been assessed and signed by an inspector. The period between stage completion and payments exposes companies and contractors to financial risk. If remedial work is needed, the risk only grows.
How Can Cambrian Help?
Payment Terms
Our payment terms are designed to ensure maximum financial liquidity when it comes to transport costs. Payment terms are twice-monthly by Direct Debit. Weekly Payment terms are also available. Transactions from the 1st to the 15th of the month become payable at the end of the current month, and transactions from the 16th to the 31st of the month become payable on the 15th of the following month, giving you up to 30 days of interest-free credit.
This system allows your business to make regular, smaller payments instead of being lumped with one big bill at the end of the month.
End of red diesel
At the beginning of April, the construction industry will no longer be able to purchase rebated fuel (red diesel). This will mainly affect the fueling of plant machinery.
Why is this change being brought in?
As part of the UK’s commitment to becoming a net-zero emissions nation by 2050, laws are now being introduced to limit the threat to the public from air pollution. The construction industry accounts for around 15% of all the diesel used in the UK and is responsible for the production of nearly 14 million tonnes of carbon dioxide a year. In the 2020 Budget, an announcement was made to remove the entitlement to use red diesel and rebated biodiesel from most sectors as of April 2022 to help meet the government’s green objectives.
From April 2022, the tax changes will ensure that most users of red diesel use fuel taxed at the standard rate for diesel. This tax rate fairly reflects the harmful impact of the emissions they produce.
Through this change, the government hopes to incentivise investment in cleaner alternatives and economical use of equipment.
How Can Cambrian Help?
Fuel Cards
One of the main benefits of a fuel card is that you can claim back the VAT on all business-related fuel purchases. We offer our customers a fixed weekly price which is related to the wholesale cost and not the prices at the pump. When international crises are not adversely affecting production and sourcing, our fixed weekly prices often provide substantial financial savings. Fixed weekly prices are also cheaper than using a credit card as you have to pay pump prices, there are variable APRs and there are no restrictions on non-fuel product purchases.
Our free online account portal offers full transparency on all your fuel and vehicle-related purchases. Through the portal, you can view and download invoices, drawings reports, and administrate your fuel cards.
What are the other benefits of fuel cards?
- Fuel cards negate the use for drivers to carry cash
- Drivers will not have to religiously collect receipts and fill in reimbursement forms. This allows them to focus on their job and not worry about their personal cash flow issues
- Security – every card is PIN protected and registered to either a driver or a vehicle
- Many cards enable you to collect either Shell GO+ points, Nectar points or Tesco Clubcard points
To find out more about our range of fuel cards click here – https://www.cambriancards.com/fuel-cards/
Telematics
To complement our fuel cards, we also offer a range of telematics devices.
Telematics devices relay information about how and where a vehicle is being driven in real-time. This is achieved through the use of wired telematics units and dashcams. They are an essential tool for businesses that help economise driving habits whilst providing a comprehension security solution for company assets.
Industry Statistics
In a recent survey conducted by the Chartered Institute of Building:
- 92% of respondents were directly affected by petty crime
- 21% stated that their construction sites were robbed on a weekly basis
According to the Office for National Statistics:
- The theft of tools and supplies from vans is costing UK tradespeople £264million a year
- A tradesperson’s van is broken into on average once every 23 minutes in the UK
- Van theft has increased 45% over the last four years
What’s the financial cost to each business?
- £11566 – average costs the victim
- £5982 – loss of work and income
- £5584 – the cost of replacing the stolen goods
- Victims lose 30 days work on average per year due to vehicle thefts
What data does a fleet manager see?
Through the accompanying software portal, a fleet manager is able to see if drivers are:
- Driving too fast
- Taking corners too fast
- Breaking harshly
- Excessive idling
The portal provides a map view of the vehicle fleet and if incidents occur, the fleet manager will recieve instant notifications.
How will it save my company money?
Telematics devices:
as
- Cut in instances of speeding by 35%
- Reduction in accident rates by 39%
- Enhancement in fuel economy by 10%
- 30% increase in staff productivity
To find out more about our selection of telematics devices click here – https://www.cambriancards.com/telematics/
Why Choose Cambrian?
Cambrian Fuelcard Services Ltd is an independent, award-winning, family-run business. The company was established in 1976 and moved from oil distribution to fuel cards in the early 90s. Our customers are at the heart of everything we do and we value their business.We offer a comprehensive portfolio of 8 fuel cards from some of the biggest brands with a network of 8000 stations and over 7500 charging points.
To learn more about Cambrian click here – https://www.cambriancards.com/about-cambrian/
Useful Links
https://atradius.co.uk/reports/industry-trends-construction-united-kingdom-2021.html
https://www.statista.com/statistics/676886/uk-construction-employment-by-size/
https://www.cambriancards.com/red-diesel-rules-change/
How Can Cambrian Help My Construction Company?