How can fuel cards benefit my construction company?
The construction industry is one of the key industries in the UK, both in terms of its value to the economy and the size of its workforce. The construction sector rebounded promisingly after the initial impact of the Covid-19 pandemic, and the main driver is the residential property sector.
Why is the construction industry so important?
Employment
In 2021, there were approximately 2.2 million employed by businesses working within the construction sector in the United Kingdom, with 249 thousand people employed in businesses that employed 500 or more people. This increased to around 2.69 million in 2022, with construction jobs accounting for between 5-7% of all jobs in the UK.
GVA
In 2022, the gross value added (GVA) of the construction industry in the UK is estimated to amount to over ~£130Bn. It is a huge contributor to the UK economy every year and both demand and requirement is set to increase for every region within the UK by 2026.
Economic Growth
One of the key indicators of a countries economic growth is the buoyancy of it’s housing market. As the construction industry is the facilitator of this demand, it is an important contributor to the overall success of the UK economy.
What factors are affecting construction companies at the moment?
Cash flow
Despite the construction boom and continued growth at the moment, there are still plenty of associated risks with its success.
In January 2022, a report by financial analysts at Begbies Traynor stated that more than 75,000 construction firms could be at risk of collapsing due to a few factors. These included:
- Cash flow squeezes
- Shortage of materials
- Inflation in the economy
In general terms, ‘cash flow’ is used to describe the movement of income into and expenditure out of a business over time. In construction, the term ‘cash flow’ typically refers to the analysis of when costs will be incurred and how much they will amount to during a project.
Cash flow 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 building project has been completed and the work has been assessed and signed off by an inspector. If remedial work is needed, this risk only grows.
So, how can fuel cards benefit my construction company?
As a construction company, you may be aware of the costs involved in running and maintaining a fleet of vehicles. With fuel alone being a significant expense, it is important to find ways to manage and control this expense. Fuel cards can help with this. The following are some ways that a fuel card can benefit your construction company.
1. Control fuel expenses
Fuel cards provide your company with better control and management over fuel expenses. You can limit the types of purchases that can be made with the card, as well as the amount of fuel. This allows you to manage fuel expenses effectively and prevent unauthorised purchases.
2. Reduce your administrative workload
Fuel cards can greatly reduce the amount of administrative workload involved in managing fuel expenses. With fuel cards, you and your drivers will no longer need to collect receipts or carry around large amounts of cash.
3. Improve fleet management
Fuel cards can help to improve your fleet management. You can easily track fuel purchases by vehicle, driver and location. This allows you to monitor fuel usage and identify inefficiencies.
4. Enhance security
Fuel cards are significantly safer than traditional payment methods. They are designed specifically for fuel purchases and cannot be used for other transactions. You can also set limits on fuel purchases and deactivate cards that are lost or stolen.
Why choose Cambrian Fuelcard Services?
Fuel cards can help construction companies manage and control fuel expenses effectively. 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.
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. Depending on the card you choose, you can also receive discounts, rewards and loyalty points. They are also safe and secure.
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.
Telematics
To complement our fuel cards, we have partnered with two of the UK’s premier telematics companies and 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.
Useful links:
To find out more about our fuel cards can help your business, click here – https://www.cambriancards.com/fuel-cards
To learn more about how our telematics devices can help your business, click here – https://www.cambriancards.com/telematics