Turning to digital tools as workloads keep rising

The study, by field service software provider BigChange and independent research consultancy Opinium, shows that 85% of firms expect to be busier over the next 12 months, and nearly one-in-five (17%) anticipate that workloads will at least double.

Expectations of growth are highest among building maintenance, facilities management, cleaning and waste management firms. At least 88% of business leaders surveyed from these sectors said they expected workloads to increase going into 2022.

But growing demand doesn’t mean plain sailing in the year ahead. 73% of respondents said increasing costs for materials and fuel would reduce their profitability in 2022, and 69% said that the higher price of labour would negatively impact their finances.

Almost all (94%) of the firms surveyed expected to increase technology spending in 2022 to help manage extra demand and rising costs. A quarter (23%) say they will spend at least 50% more on digital tools than in the last 12 months.

The median - or middle of the pack - firm expects to increase technology spending by 11% in the next 12 months. Median firms plan to employ 7% more people and increase broader investment in their business by 10% over the same period. 82% of leaders told researchers that good practice in their sector now involved using digital systems to manage their businesses. More than half (54%) said that operations should be automated and optimised within a single system.

According to Richard Warley, BigChange CEO demand for trades and other services delivered by field-based employees is booming. "This is clearly good news for the sector,” he said.

“However, it also brings significant challenges. With costs spiralling, firms can’t afford to take on and train a proportionate number of new employees. Our study suggests that almost all trades businesses are now looking to use technologies proven to make the best use of resources and time. Firms are working smarter as well as harder.”

Slick processes and strong finance 
Founded in 2018, Nserv provides facilities maintenance and construction services to retailers, restaurants and care homes across the South East of England.

The company, which has headquarters in Corringham, Essex, increased its headcount to 57 people, grew turnover by 75% to £5.1million and delivered a healthy profit in the year to August 2021.

Nserv's managing director, Dean Barber, said that although work with retail and restaurant customers was affected during the initial lockdown, the company came
out of that period three times stronger. "We picked up big contracts to support national organisations in the South East and introduced new technology to help manage jobs and our workforce more effectively," he explained.

"Growth has been incredible since then. Those contracts boosted the business, we've been bringing sites back online after lockdown, and our slick processes and strong finances help attract new customers every week now. We are hiring across the South East in anticipation of further growth and another good year.

"We've doubled the size of the team since the first lockdown and brought in some great people, but talent has still been an issue. Skilled tradespeople are hard to find, and we are crying out for good electricians in particular. We could have grown even faster if there were more of them.

"We've been okay on fuel costs because our people are spread across the South East and live close to where they work, but materials is a tough one. We are quoting market rates and spending a llot more time justifying why they've gone up so much. The cost of ply has increased by 40% in the last six months, for example, so a quote can end up being inaccurate by the time it's approved."

Midlands expansion helps drainage specialist improve service and cut costs

Leeds-based Subscan UDS provides a range of drainage, utility, and surveying services - from land surveying to underground utility mapping, plus extensive drainage services - including drainage clearance, CCTV surveying, drain lining and rehabilitation. It operated mainly as normal throughout 2020 and has seen demand increase by a fifth over the last 12 months. 

The company employs 115 people today and has just opened a new depot in Derby to support expansion into the Midlands area. It anticipates growth of 20% and achieving a £10m turnover next year.

Kirk Mason, operations director at Subscan UDS, said: "Subscan are growing strongly due to significant contract wins and recruiting at pace. Our investment in the new Derby branch means we are closer to customers in the Midlands area and will allow us to serve them better.

"Shortages of skilled staff has been our biggest challenge. We are having to pay more to recruit and retain HGV drivers and Brexit has made it harder to bring in the specialist surveyors we used to from areas such as Poland and Lithuania. We’ve got 30 people in that department doing the work of 45.

"The cost of fuel and the scarcity of raw materials has been an issue. One of the reasons we opened in Derby rather than serving the Midlands from Leeds is to save on fuel costs and eliminate overnight stays. We are also bulk buying and storing materials in much larger quantities rather than ordering them when required."

Celsius targets £1m mark after a rebound year for residential plumbing

Celsius Plumbing and Heating works with homeowners, private landlords and property agents across Edinburgh. Although the company took a hit when forced to focus on essential work only during the first 2020 lockdown, its fortunes have bounced back strongly since then.

Celsius delivered a 36% turnover increase as demand rebounded and expanded its team from 12 to 18 people in the year to August 2021. It targets similar growth this year and aims to break the £1m turnover barrier for the first time.

Michael Cairns, company director at Celsius Plumbing & Heating, said: "Demand for our services went crazy when the first lockdown lifted. People were desperate to get work done, and we had a backlog of almost 500 jobs to get through.

"We worked hard to make sure people were confident letting us into their homes and re-engineered our customer journey to improve convenience and reduce risk. We introduced online booking as part of an enhanced digital experience that keeps clients fully informed on things like arrival times, job progress and the steps we've taken around Covid.

"We've also optimised our operations to the point that we can pretty much guarantee a same-day response for reactive work. Clients love that attention to detail, they are recommending us to their friends, and demand is increasing as a result.

"It was clear that cash-flow could be a problem, so we took steps to mitigate that risk with instant digital invoicing and online payments. We've also automated as many back-office processes as possible. The upshot is that we are more profitable than ever before and growing stronger every day.

"I'm aware of companies in which skilled plumbers are jumping ship for an extra £1 an hour, but talent hasn't been an issue for us. We've invested in the future by taking on apprentices, we've created a culture that makes people want to stay, and we've got an excellent network of trusted subcontractors plugged into our systems to help manage spikes in demand."

For more details on BigChange’s study and how trades businesses are faring in the current climate, visit https://www.bigchange.com/field-service-sector-report/.