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News Release from: Bibby Financial Services | Subject: Poor transport infrastructure
Edited by the Buildingtalk Editorial
Team on 12 May 2005
Poor transport infrastructure impacts
construction
Research reveals the true extent Britain's poor transport infrastructure is impacting on small construction businesses.
Poor roads drive down construction profits by making staff late for work Britain's poor transport infrastructure is causing staff to be late for work in nearly half (46%) of small construction firms and hitting the bottom line hard as a result, according to new research* from leading business cashflow provider Bibby Financial Services Twenty nine per cent of construction bosses who responded to the survey claim their companies lose valuable production time because of traffic congestion and public transport delays, and 11 per cent say this is to blame for their employees being late for work every single day of the week
This article was originally published on Buildingtalk on 6 Apr 2005 at 8.00am (UK)
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Two in 10 (21%) con struction company owners and managers complain that transport traumas are responsible for making their workers late at least once a week, with 40% blaming traffic congestion as the number one cause.
But it's not just being late for work that has a negative impact on the sector's firms as 22% of owners and managers say their staff have also missed important business meetings because of the state of the country's road and rail network.
In total, small construction businesses believe the poor transport infrastructure costs them GBP 181million a year in lost productivity and profits compared with the UK-wide figure of GBP 755million.
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David Robertson, chief executive of Bibby Financial Services, said: "Every small business owner or manager knows their staff are going to be late from time to time but we had no idea of the true extent of the problem".
"Most bosses will except this is going to happen, but I don't imagine they have any idea of the overall detrimental effect it has on their businesses." Asked if the introduction of congestion charging to their nearest city would make a difference, 24% of businesses thought it would save time wasted due to traffic congestion, but by far the greatest concern was that it would lead to an increase in business costs.
As many as 40% of firms, however, do not believe congestion charging would impact their businesses at all.
The second most voted for fear was a reduction in customer visits followed closely by a negative impact on overall business efficiency and making it more difficult to recruit staff.
David Robertson added: "Extending congestion charging to other UK cities may not be the answer but changes will have to be made to prevent small business from buckling under the strain caused by an outdated road and rail network.".
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