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News Release from: Bibby Financial Services | Subject: Britain's poor roads
Edited by the Buildingtalk Editorial
Team on 14 April 2005
Poor roads cost construction business
New research shows that Britain's poor roads are costing construction businesses dear.
Small construction businesses believe Britain's poor roads are costing them GBP 181million a year in lost productivity and profits, according to new research* from leading business cashflow provider Bibby Financial Services The small business sector as a whole estimates it loses a total of GBP 755million a year at the hands of the country's poor transport infrastructure
This article was originally published on Buildingtalk on 6 Apr 2005 at 8.00am (UK)
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In the manufacturing arena, however, 39% of companies who responded to the survey claim to be losing out financially every year solely because the nation's roads are not good enough.
Fourteen per cent say they lose between GBP 2,000 and GBP 5,000 a year while 15% claim they have to absorb up to GBP 1,000 a year.
Four per cent, however, say the cost is in excess of GBP 10,000 and a further three per cent value it at between GBP 5,000 and GBP 10,000.
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Top of the transport trauma list is traffic congestion, which according to 40% of construction owners and managers, has the single biggest negative effect on their businesses.
Other major issues cause by Britain's poor transport infrastructure include lost production time due to staff lateness (29%), customer frustration caused by the inability to deliver on time (24%) and missing important business meetings (22%).
Federation of Small Businesses Transport Chairman, Steve Collie, said: "Transport is an essential tool of the trade for small firms".
"They are heavily dependent on their cars, vans and the railways to get their goods and services to customers easily, quickly and cheaply".
"But transport problems, such as traffic jams, railway cancellations, and never-ending roadworks, severely handicap small businesses".
""A package of measures is what is needed to tackle the long standing transport problems - a combination of long term strategy and short term initiatives.
Joined-up thinking is vital - local and central government must work together and both must view the transport infrastructure as a whole." David Robertson, chief executive of Bibby Financial Services, said: "The effects of the country's poor transport infrastructure are being felt right across the board.
Every business sector seems to suffer as a result, but it is clear that construction companies are being seriously affected by these travel nightmares." "Britain's small businesses already have plenty on their plates, but the poor state of the country's roads and railways network is causing no end of problems, many of which have a direct effect on the bottom line".
""When you are a small business owner or manager you have all the pressure of managing cash flow, meeting sales targets, dealing with red tape, recruiting skilled staff, keeping up with the competition and juggling the work/life balance".
"This is just one more complication that small business could well do without.".
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