The UK scaffolding sector has seen a significant recovery, as evident in the latest CN Specialists Index 2022, marking a notable increase in revenue and profit.
- Scaffolding firms reported the highest median average pre-tax margin among seven specialisms, achieving 6.6%, a stark rise from 1.8% in 2021.
- Revenue amongst the top 10 firms surged from an aggregate of £641.3m to £793m, despite persistent skill shortages and material costs pressure.
- Labour shortages have led to increased costs within the scaffolding industry, significantly affecting contractors under fixed-price agreements.
- Activity and revenue in regions such as the Midlands and the North have risen partly due to initiatives like HS2 and the government’s levelling-up agenda.
The UK scaffolding industry has rebounded impressively from the downturn caused by the pandemic, according to recent data in the CN Specialists Index 2022. The sector achieved a median average pre-tax margin of 6.6%, a substantial rise from the previous year’s 1.8%. This figure not only represents significant growth, but it also marks the strongest performance among the seven specialisms tracked in the index.
The top ten scaffolding firms recorded a notable increase in revenue, collectively jumping from £641.3 million to £793 million. Only three companies reported a decline, a remarkable improvement compared to the eight firms that posted losses in the prior year.
Des Moore from Trad Group highlights that spiralling wages due to skill shortages pose a challenge to recovering costs, especially since most firms operate under fixed-price contracts. Despite these pressures, Trad Group reported a tenfold increase in pre-tax profit, benefiting from strategic integration and equipment hiring trends.
Kaefer led the chart with a turnover of £234.1 million, reflecting an 89% increase from last year after integrating Wood Group Industrial Services. Other companies saw varied growth, with PHD Modular Access posting a 38% increase, while D&B Scaffolding experienced a 14% decline.
Cost pressure from rising material prices remains a concern, as indicated in Peri’s accounts, which take into account unprecedented challenges in supply availability. GKR Scaffolding adopts enhanced planning to timely manage its material supply amidst ongoing volatility.
Regionally, there is an upswing in scaffolding activities, especially in the Midlands and North, driven by the government’s levelling-up agenda and infrastructure projects like HS2. Nevertheless, economic uncertainties, particularly the forecasted recession, could impact future growth trends in the industry.
The UK’s scaffolding industry has successfully navigated post-pandemic challenges, showcasing resilience and significant financial recovery.
