William Davies, managing director at Aspect Maintenance, commented: “People are still spending money on property maintenance and refurbishment, but they appreciate the competitive nature of the market and know that they can shop around for the best price.
“The sector’s margins are being squeezed, and operators are having to be smarter in the way they work. There has been a power shift to the customer and there has never been a better time to get work done on your home. In addition to the competitive market place for the builder, materials suppliers are fighting for sales so good discounts can be achieved by your builder which can be passed on.”
Aspect Maintenance operates a reactive maintenance division, as well as a planned refurbishment business, covering everything from the drains to the roof. At the beginning of 2009, Davies expected to see refurbishments business drop off, but in fact the work remains just at tighter margins. He added:
“We have seen a reduction in the average size of job being undertaken, with customers doing a bathroom or a kitchen rather than the entire property. Standard project size has moved from £100K+ to around £30-£40K. The volume of work has however remained strong.
“And, people’s decision making processes have not changed. Those who had always planned to use a larger firm like Aspect Maintenance, as opposed to a one-man band, continue to do so.”
On the commercial side, Aspect Maintenance has seen little change to the way that shops, restaurants, bars and offices run their reactive and planned property maintenance. Commenting on this sector, Davies said:
“Businesses have just slowed their payments. They aren’t disputing invoices, but what they are doing is slowing the paying timeframes – where previously they may have settled an invoice in 30 days, today, this has been increased to around 40-60 days.
“It is clear to see that the economic downturn is having a real impact on the sector, and the tighter margins will undoubtedly be making it extremely difficult for the smaller operators. It’s about working smarter, and understanding the customer’s needs, both from a residential and commercial perspective.”
