The benefits of national infrastructure projects do not reach most subcontractors, according to Bibby Financial Services (BFS).
In their ‘Subcontracting Growth report’, BFS found that 78% of smaller construction firms did benefit from fiscal stimulus packages.
Helen Wheeler, managing direct of construction finance at BFS said: “Despite the sound of claxons coming from government each time a large scale infrastructure project is announced, it is clear that any benefits to the construction industry are swallowed up by the large and the few.
“What’s missing though is evidence that these projects are providing trade and jobs to a wider range of businesses throughout the construction industry.”
Just 4% of subcontractors said that national infrastructure projects could help them secure more work, compared with 45% for commercial contracts, and 24% for housebuilding.
According to the report, 31% of firms wanted support in tendering for national contracts, and 52% of subcontractors thought local authority contracts had the largest potential benefit to the construction industry.
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Wheeler said that the government’s new focus on fiscal stimulus is not guaranteed to help subcontractors.
She added: “Such fiscal measures are welcomed, but our research shows that not all businesses in the construction supply chain are set to benefit. Subcontractors are crying out for support and, ahead of the Autumn Statement, the government should heed this warning and take steps to address this issue.”