Industry view: demand is not the problem, getting seen is

Andy Preston is Director of Marketplace at Once For All, a supply chain management business working across the construction industry. Here he looks at why a booming market does not automatically translate into a secure pipeline of work, particularly for newer scaffolding firms.

According to Companies House data, the number of new scaffolding companies has almost doubled over the last three years. They are entering a market where demand is booming, and it looks like a genuine opportunity for new entrants to the profession. On Marketplace, scaffolding ranks sixth in terms of the volume of jobs posted.

That demand is reflected in how scaffolders feel about the year ahead. Of the 57 scaffolders we surveyed at this year's ScaffEx, 80% are optimistic about the sector over the next 12 months.

Yet demand does not always translate into a secure pipeline, especially for new businesses with limited resources and reputation. The optimism is justified, but challenges remain: getting your business recognised, or moving from the domestic sector into commercial work. The first step is always knowing where to find the opportunity and who to contact.

Relationships still open doors

Like many business deals, and particularly in corporate tenders and contracts, reputation and relationships carry the biggest sway and the lowest risk. The survey backed this up, with the majority of respondents listing repeat business and word of mouth as the most successful way of securing work.

That lends itself to the assumption that work is directed towards well established scaffolding firms rather than newcomers, which is why building contacts and recognition can be a particular challenge for younger, less well known companies.

None of that means starting your own scaffolding business is not worth the time. What it does mean is that new businesses without a referral or repeat business pipeline need a clear strategy for winning work, and that starts with finding the opportunities and getting seen. Data from our Marketplace Health Index shows 34% of subcontractors cited being noticed by the right contractors as their main challenge.

The hidden cost of finding work

Beyond relationships, the next most common way scaffolders found work was through Google, and that comes at a cost in time. Without a strong pipeline, new businesses can find themselves spending more time looking for work than doing it.

Of the scaffolders we asked, 37% spend more than 10 hours a week looking for work, and one in five spend up to £15,000 a year doing it. That may be a reasonable output for a larger business, but it is unsustainable for smaller contractors or sole traders.

At the end of the day, scaffolders want to be on site delivering the work, not chasing it. That is why they need affordable solutions that can match their company to relevant opportunities.

Beyond being seen

Being seen is only the first half of the challenge. Being ready to win the work once you have been seen is the other half, particularly with the Future Homes Standard raising the bar on skills and compliance.

Scaffolders should make sure they are visible in the right places, including networking events such as ScaffEx, where relationships are built and maintained. They should also engage with contractors beyond Tier 1, as Tier 2, 3 and 4 contractors are often the best source of work.

Do that, and you are in a strong position to take advantage of the growth opportunity and build a successful, sustainable business.