The first week of March saw excellent news for the British economy, with estimates suggesting that the UK’s economy will grow faster than the equivalent economies of other G7 nations in the coming quarters.
GDP Set to Rise over the Next 3 Years
Britain’s GDP appears set to rise by 0.6 percent per quarter until September 2015 and, as a result, many feel buoyant; especially because this means that the economy will recover to pre-financial crisis size by June.
This year, it looks as though Britain’s economy will expand by 2.7 percent, and analysts predict that this will then be followed by a 2.4 percent increase in both 2015 and 2016. All of this has led to the BCC Director General John Longworth claiming that “our economic recovery is gaining momentum”.
Great News for Expanding Businesses
For businesses the length and breadth of the country, this is undoubtedly brilliant news, with many ceasing on the opportunity to expand and create jobs. The drive and ambition of entrepreneurs appears central to this plan, with an increase in projections looking as though they will further expand a bustling business sector.
It is actually thought that the BCC’s 2.7 percent growth estimate may actually be conservative in nature, and that the UK’s growth level will actually surpass this by the close of the year.
Construction Sector Looks Set to Gain
Figures released last month show that the UK’s construction sector is growing at its fastest rate in the commercial sector since 2007. Finally, it appears as though the construction sector is leaving the doldrums, thus providing a positive indicator for all those involved in the construction sector, and those looking to expand their construction business.
Sadly, although London’s construction industry has been relatively booming, this has merely acted as a sticking plaster on the industry, with much of the UK’s construction sector in serious decline during the period. Now, however, it seems as though the sector is beginning to recover, and many construction businesses are planning accordingly.
Of course, London will still be the lifeblood of the construction sector, but from Birmingham to Barrow, it appears as though overall growth will be widespread. Although it may have been one of the sectors hardest hit by the recession, the construction sector appears as though it will be the one that drives economic growth. Optimism and an uptake in activity look as though they will drive projects over the coming 12-36 months.
Is it Time Your Business Expanded?
Overall then, the signs for the sector appear as though they will be incredibly positive and it is likely that we will now see 36 months worth of sustained growth. However, in spite of this, although growth is encouraged, the prospect of industrial growth should never be taken lightly, and it should be done after undertaking cost-benefit analysis.
Of course, sector expansion does not necessarily mean the expansion of each individual business, and because of this, you should be wary. Over the course of the next 3-6 months, it would be incredibly wise to watch project expansion in your business, as this could be a key indication that it is time for you to expand your business.
When it comes to making the decision about whether to expand or not, costing up the implications of expansions is crucial. Your two largest costs will probably be personnel costs and machinery costs. Lowering these will give you the maximum possible chance of expanding your business in a safe, sustainable way. For personnel, apprentices should be a viable solution, whereas for equipment and machinery, used equipment from Scot JCB is much more affordable than brand new options.