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Government Provides the Cash for Construction “Digital Revolution”

The Government has committed £170m to push construction into the digital age and accelerating the training of apprentices.

 

The construction industry had a difficult few months, and many companies are still reeling from Construction’s collapse, bad weather and Brexit uncertainty. While the rest of the business community have stormed ahead and embraced technology and all its benefits, Britain’s most resistant sector is now getting a push from government.

While some companies already introduced modern technology to their construction site, some are still hesitant to commit the time and money to digital projects. A lack of cash is the major cause for hesitation, with many unwilling to risk their cash flow for tech’s sake. However, with the government’s backing, hopefully, this sentiment will soon shift and the whole sector will direct their attention to the digital age.

Business and Energy Secretary Greg Clark will unveil the investment as part of a sector deal for the building industry, with construction firms also offering up £250 million. Brexit uncertainty and the demise of Carillion have both weighed heavily on construction companies, chipping away at business confidence and ambition. This gesture from Westminister will hopefully see expansion projects completed and productivity and work output increased.

While this financial boost will provide companies with a nudge in the right direction, they will need to sustain it. At the Credit Protection Association, our debt recovery services provide our Members with financial stability, as well as advise them on how to utilise their new financial power.

The Government said the cash will be used to spark a “bytes and mortar revolution” by improving digital design and off-site manufacturing of building components, which it claims can help halve the time it takes to build homes.

Mr Clark will say the deal “will drive economic growth and create well-paid highly-skilled jobs in every part of the UK”.

 

Investment will also be channelled into energy efficiency measures as part of a push to slash the energy use of new buildings by 50pc by 2030.

It demanded a lot from the business community to see traditional concepts dismantled. To see paper cheques replaced by mobile banking, human interaction replaced with automated machines, and dangerous tasks performed by automatons. This is where start-up businesses have the advantage, with their attention directed at the future and not on the past. Construction businesses have struggled with cash flow and as a result, business owners have taken a step back from investment.

While this initiative launched by the government should boost confidence, business owners should approach a third party for help in keeping a strong pace. At the Credit Protection Association, the collaboration between our debt recovery and credit management products ensure any new advancements within the business are backed up by positive cash flow finances and an strong cash flow.

This injection of cash is a good start, but it’s up to business owners and credit managers to see it through to the end.

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow.
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The Latest Insolvencies to 12 Jul 2018.

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