The Financial Foreman Insights – Plumbing Part 3
Previously we focus on the future growth prospects of the plumbing industry, now let’s focus on the current opportunities that you can take advantage of. Call it the easy wins, it will generate returns faster for your business.
Licencing
Further training to upgrade or acquire new plumbing licences permits the business to operate in a larger variety of segments. Such as resource infrastructure, equipment and solar technology opening up new opportunities and revenue streams for your business.
Gas Fitting
Specialise in gas fitting, this segment of the plumbing industry has been growing over the last 5 years increasing its revenue share in the plumbing industry. The growth in the share of the population with access to natural gas as a source energy is driving this demand and will continue to grow. In comparison to general plumbing services, gas fitting services offer a high sales per job ratio.
Roof Plumbing and Drainage
An increase in domestic water tank installations and wider use of steel roofing on single-unit houses and multi-unit apartments has seen a rise in roof plumbing and drainage services. A particular focus on those that are environmentally conscious can reap rewards.
“Growing markets create opportunities and new revenue streams for your business”
Skilled Labour
It’s no secret that finding good skilled labour is a difficult task a problem that is not unique to the plumbing industry but seen right through the construction industry. There are a few ways you can use this to your advantage:-
- Build a good relationship with training providers and apprenticeship organisations. This should give you access to staff with a good mindset and the right attitude before they become available in the employment market.
- Build a relationship with schools to have work experience students through your business, this again is a great way to great future staff with a good mindset and the right attitude.
This way you are able to mould your staff to your business way of doing business, with its values and representative of your brand.
What to do next
Larger contracting firms are currently offering a broad range of services, a one-stop shop if you will. Contrastingly smaller contractors are increasingly specialising into specific service categories (hot water service, gas, solar heating etc.) allowing them to capture contracts across a larger geographic area. Think about your experience in the industry and particularly what your business does well that is where the greatest opportunity will be.
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Disclaimer: This article should not be intended as your primary source of Tax, Accounting or Financial Advice. Always contact your Accountant for help.
An accountant with nearly a decade of industry experience, Joshua has worked extremely close with his clients, educating and guiding them with through building, growing and preparing their businesses for the future.
