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