A recently published report painted a positive outlook for the construction sector, stating that it would stabilise at a yearly average growth rate of 3% from 2023 to 2026, supported by investments in transport, renewable energy, housing and manufacturing projects, says small and medium-sized enterprise (SME) funding provider Lulalend chief marketing officer Tom Stuart.
“Growth over the past 11 months was largely supported by the restart of projects that were delayed owing to the pandemic and its restrictions, together with an increase in the number of building plans passed in 2021,” he points out.
SMEs are ready to tap into the opportunities that emerge in the coming months, he adds.
A key aspect of forward planning for the emerging opportunities is securing one’s cash flow, and this includes both the December shutdown period, as well as the year ahead once you reopen in January. Access to working capital allows SMEs in this industry to cover fixed costs and overheads while the business shuts down over the holiday period, he avers.
Appropriate capital levels will also help increase opportunities for small and mid-sized construction businesses. They can then better grasp opportunities created by diversification, for example, when a company decides to tap into the solar energy and renewables market.
“Small construction businesses are under renovation and need access to funds that will help them adapt and grow. They need this kind of financial access within days and not only after a drawn-out application process,” he adds.
“It is essential for small construction businesses to have access to a reliable line of funding that enables them to plan for future growth with confidence, while being able to face any challenges that may arise,” says Stuart.