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Raw material prices force contractors to cut back

More than one third of British contractors are looking to cut costs in the face of rising raw materials prices, a study has claimed.

A survey of 500 firms in the UK by insurance company NIG says that 38 per cent are actively cutting back in the face of material costs.

It also claims that one in ten businesses have had materials stolen from them over the last 12 months.

One in ten UK construction companies that spoke to NIG said that they feared they were uninsured against theft, with 15 per cent admitting that they had never had a risk assessment carried out on their business.

Martin Hall, director of commercial underwriting at NIG, cautioned construction companies against cutting costs without taking out insurance.

“The UK construction sector is facing a number of challenges and the rising cost of raw materials has become a key concern. While many are taking steps to cater for these challenges, it is vital that businesses assess the risks they face and make sure they are not leaving themselves exposed to unnecessary risks and threats,” he said.

The research was carried out by BDRC Continental in August last year and targeted UK companies with an annual turnover over £50,000.


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