In somewhat surprising news, an RSM survey has revealed that 43% of mid-market construction firms feel a ‘no deal’ Brexit will have an advantageous or favourable effect on their revenues.
Additionally, RSM say a further 25% of construction firms feel a ‘no deal’ scenario will have no effect whatsoever on their future turnover. Only 21% are worried it will harm revenues, while 7% believe it will be catastrophic for their companies. Compare this to the 45% in financial services and 40% in technology, media, and telecoms who view a ‘no deal’ scenario as a possible benefit. Conversely, 35% of the consumer sector see it as potentially harmful.
Kelly Boorman is Partner and National Head of Construction at RSM. According to Kelly: “Mid-market construction firms continue to show optimism about their future prospects, despite continuing market uncertainty. It is perhaps surprising how bullish they are when it comes to the effects of a ‘no deal’ Brexit. One of the reasons for this could be down to the fact that there continues to be investment in the sector, demand for housing and focus on new innovation to generate both efficiencies and growth. This coupled with the weak pound continuing to attract overseas investment provides opportunity for growth.”
RSM’s survey also found that construction sector confidence in the government’s ability to negotiate a ‘good deal’ had dropped by 22%. Currently at 46%, confidence had dropped from 68% the previous quarter. Optimism within construction now sits at the lowest level since the survey began in Q2 2017. Despite this, both the construction and manufacturing sectors maintain the most confidence in a ‘good deal’ out of all the industries surveyed.
Kelly concluded: “All eyes will now be on this week’s EU summit, described by Donald Tusk as ‘the moment of truth’. Many businesses will be hoping for some much-needed progress from both the EU and the UK.”
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