Key Takeaways:
- Income Decline: Tradespeople in the UK experienced a significant average income drop of 17% in 2023, amounting to £14,000 less per year.
- Top-Earning Trades: Builders lead the pack with an average turnover of £114,353 in 2023, while dryliners emerge as the fastest-growing trade.
- Regional Variations: Grays in Essex tops the list of towns with the highest average turnover for tradespeople, while Worcester, St Helens, and Eastbourne highlight areas where tradespeople faced financial challenges.
Uncovering Financial Challenges in the Trades Sector
Recent research conducted by Simply Business, a leading small business insurance provider, has revealed concerning trends in the earnings of tradespeople across the UK. The findings shed light on income disparities, top-earning trades, regional variations, and the impact of external factors on the financial stability of tradespeople.
Plummeting Earnings: A Struggle for Tradespeople
Tradespeople faced a daunting reality in 2023, with average earnings plummeting by £14,000 compared to the previous year. This stark decline of 17% in average income raises questions about the financial resilience of individuals in the trades sector and the challenges they encounter in sustaining profitable businesses.
Top Towns for Tradespeople: Grays Leads the Way
Grays in Essex emerged as the top town for tradespeople in terms of average turnover, showcasing resilience and thriving business activity. However, regional variations highlight areas where tradespeople encountered financial strains, emphasizing the need for targeted support and interventions.
Builders Reign Supreme: High-Earning Trades in Focus
Builders took the lead as the highest-earning trade in the UK, boasting an impressive average turnover of £114,353 in 2023. This success story is complemented by the emergence of drylining as the fastest-growing trade, signaling industry shifts towards improved insulation and energy efficiency measures.
Impact of External Factors
It’s crucial to note that turnover doesn’t equate to profit, and tradespeople grapple with various external challenges. Supply chain disruptions, higher material costs, and evolving consumer behavior all contribute to the financial complexities faced by individuals in the trades sector.
Insights from Simply Business
Bea Montoya, UK COO at Simply Business, emphasizes the importance of supporting small businesses, especially tradespeople who are integral to local economies. Despite income declines, Montoya encourages consumers to continue relying on local tradespeople, highlighting their vital contributions to communities and the economy.
Regional Dynamics: Top-Earning Locations and Financial Strains
The research highlights notable variations in earnings across different regions. Grays, Fareham, St Albans, and Oxford stand out as top-earning locations, showcasing robust business environments for tradespeople. Conversely, towns like Worcester, St Helens, and Eastbourne reflect areas where tradespeople felt financial pressures.
About Simply Business: Empowering Small Business Owners
Simply Business stands as a prominent provider of business insurance, catering to over 900,000 small businesses and landlords across the UK. With a focus on tailored policies, tech-driven solutions, and customer-centric experiences, Simply Business plays a crucial role in supporting small businesses’ financial stability and growth.
Supporting Small Businesses Amidst Challenges
As the economic landscape evolves and challenges persist, Simply Business remains committed to empowering small business owners, including tradespeople, through comprehensive insurance solutions and advocacy for local support and engagement.
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