UK Construction – The Family Industry

As the UK is challenged by an adverse economic outlook, family businesses have been a core part of the UK economy but why are they so important to construction and wider industry sectors?

According to research recently released by Oxford Economics, family businesses comprised of 4.8 million companies, generated ￡575 billion in GVA contribution to UK GDP and employed 13.9 million people. In terms of percentages, this means that family businesses made up 85.9% of all UK firms, directly generating 44.4% of GDP and were responsible for 51% of all private sector employment within the UK.

Within construction, the sector had the highest number of family businesses in the UK encompassing 18% of all family companies and totalling 876,000 firms. However, the combination of the pandemic and Brexit presented new economic challenges for the UK’s family business sector, with many seeing their turnover fall and having to make changes to adapt to the new and harsh economic conditions.

What is most telling is that family businesses remained resilient during the COVID-19 emergency in how they coped with the pandemic and how they prepare for future challenges.?Currently family businesses are taking stock of the new business conditions in the UK. They are considering how to recover from the pandemic-induced recession and learning to work under a changed trade relationship with Europe.

Unsurprisingly, giving their longer-term culture and outlook, family businesses retained their employees at a far greater level than their non-family counterparts. Typically, family companies also have a higher proportion of women leading them than non-family companies across all size bands.

According to recent survey data, 78% of family business owners say family firms have a stronger culture and set of values in comparison to other business types but, having said that, they also wish they could put more distance between their work and personal lives.

Overall, just over three-quarters of family companies aim to grow their sales over the next few years.?How they do this by increasing the skills of those they employ, recruiting new staff, adopting new workplace practices and developing new products and services.

As the UK is once again challenged by an adverse economic outlook, family businesses remain the foundation of the construction industry and wider industry sectors.?By creating jobs and contributing heavily to GDP, I have no doubt that the family business sector will carry on and continue to be the bedrock of the UK economy.