2015 eastern counties - economic outlook - b&es - how it can help!

Rob DriscollHead of Commercial & Legal

Economic, Political and Commercial SolutionsEastern Counties12 March 2015

Council induction 2

What am I going to cover?

The economic picture

Macro

Recession

Public

Lending

Now

Why B&ES matters and the C&L solutions

The political initiatives

Council induction 3

Macro-economic picture

£90bn

6.7%

280,000 businesses

99% SMEs

83% 1 man businesses

3 million jobs = 10% of employment.

6% of construction contracting SMEs export

Council induction 4

Recession

50-75% of total value of the work SMEs within the supply chain.

2007 – 2011 8.9% down to 6.7% GDP.

3 recessions in 5 yrs

Lasted twice as long

No counter-cyclical public sector spending

Council induction 5

Public Sector

Central got £40bn (£4.5bn direct to SMEs and £4bn SMEs indirectly)

Wider public sector £147bn

Cabinet Office Govt spend with SMEs increased to 25%.

5 day payment would lead to £88 million a year to businesses

Council induction 6

Lending

Reduction of 38% compared with fall of 5% on average

Construction 2–3x more use of trade credit

TC is 24% of construction SMEs’ assets compared to 11%

SMEs 130 hours pa – 3 wks - average cost of £1,500 per.

SMEs owed £30bn in late payments (double pre-recessionary figures)

4K did go bust due to late payment

£180 million in debt interest charges

Council induction 7

Where are we now?

Supply reduces + Demand rises exponentially = Capacity constraints

In real terms, construction output in 2012 was 88.5% of levels recorded in 2008.

4.8% growth.

Fall in

R&M

infrastructure,  

public other new work and

private commercial work

Council induction 8

The B&ES Group

What are the current benefits to B&ES members of membership?

Who are the subsidiaries?

Council induction 9

B&ES Advice & Guidance

Commercial & Legal

Employment & skills

Technical & Safety

Council induction 10

C&L – in-house outsourced

Document review (commentary, risk appraisal and drafting)

FREE

Payment App

Conditions of Trading

Sub-Sub-Contract

Maintenance Agreement

Consumer Contract

Collateral Warranty

Performance Bond

Parent Company Guarantee

Disputes

Litigations

Insolvency

Adjudication

Mediation

Arbitration

Settlements

Webinars

Better Business Guides/Judge for Yourself

Extended Services – Alliances

B&ES Unique

Council induction 11

Political initiatives?

Project Bank Accounts

Prompt Payment Codes

Payment Charter

Digital Payment

PAS91

SME Payment Consultations

Council induction 12

What am I going to cover?

The economic picture

Macro

Recession

Public

Lending

Now

Why B&ES matters and the C&L solutions

The political initiatives

Thank you for listening

Rob Driscoll020 7313 4918

rob.driscoll@b-es.org