Many tradespeople are being forced to compromise on investing in their businesses as financial pressures continue to mount. New research from specialist trades insurance provider Tradesman Saver found that 79% of tradespeople are currently having to balance or compromise on at least one business decision because of financial pressures, with investment in tools, training, recruitment and marketing among the areas being affected.
More than a third (37%) said costs are influencing decisions about which jobs they take on, with many turning down work and sacrificing income because the costs associated make it less viable.
Almost a third (30%) are having to weigh up whether to buy new tools and equipment, while one in five (19%) are reconsidering investment in further training and qualifications. A further 18% said financial pressures are affecting decisions about hiring staff, and the same amount are cutting back on advertising and marketing to find new work.
The findings come as part of a new report, exploring the rising costs tradespeople face across both their businesses and households. Fuel and transport costs came out as the biggest financial pressure, affecting 45%, followed by household inflation (39%) and energy bills (34%).
The cost of tools and equipment is a concern for almost a third (29%); just over a quarter (26%) said income tax, and fifth (20%) said they’re being affected by late or missed customer payments.
Ged Walsh, founder of Southern Cross Plumbing and Heating in Manchester, says: “Increasing costs are definitely affecting investment in the business. I’ve always looked after my tools, but now I’m making them last even longer rather than replacing them when I normally would, to help save cash.
“It’s the same with training. There are courses I’d benefit from, but when they cost a few thousand pounds, you start questioning whether that money is better kept in the bank. Rising costs mean you’re constantly second-guessing where to spend and saving wherever possible.”
Dean Laming, MD at Tradesman Saver, comments: “Rising costs have an impact on what tradespeople are spending from one week to the next, but these findings show the effects go much further than that.
“When people are having to delay buying tools, think twice about training or recruitment, cut back on marketing or even reconsider which jobs they can afford to take on, they’re compromising on the ways they could be more productive, win more work, and grow their businesses.
“While there are many financial pressures outside their control, making sure they have appropriate protection in place, including considering cover for loss of earnings, can provide tradespeople with some reassurance against unexpected costs putting even greater pressure on the business.”
You can download the report, The Cost of the Trades, here
