黑洞社区

Rising workloads

UK consultancy and engineering firms are experiencing increased workloads in a buoyant sector. More than 70% of firms reported a growth in workload during 2006, according to the Association for Consultancy and Engineering鈥檚 State of Business report on the engineering and consultancy sector.

However, while workload is growing, the report highlights a skills shortage as engineers and consultants鈥� main concern, with three-quarters ranking it as their top worry. One reason for this shortage is that engineering consultancies sell themselves cheap. According to Irum Malik, economic and policy director at ACE, on average the association鈥檚 members generated a profit margin of just 9.7%. This compares with surveyors鈥� profits of 12%, accountants at 12.3%, and solicitors, who have a profit margin more than 50% higher than engineers at 15.2%.

鈥淢aximising revenue is crucial for individual businesses, particularly if the pressures to recruit and retain qualified staff dictate higher salary levels,鈥� she says. 鈥淓ngineers need to increase their fees, and clients need to understand better the value engineers bring to a project.鈥�

Private housebuilding was the largest and most profitable sector of operation for consultancy and engineering firms, with 75% of companies working in this area. The least profitable sectors were reported to be private health, leisure and entertainment, and public offices.

According to ACE, London and the south-east continue to dominate the regional marketplace, and account for 45% of total consultancy and engineering turnover. Future projects such as the Olympics and the redevelopment of Kings Cross will contribute to further growth in workloads in these areas over the longer term.

For larger firms in the sector, overseas markets account for more than a third of turnover, and for 11.5% of total industry turnover. However, ACE warns that while 鈥渞apid expansion in markets such as India and China should bolster outputs delivered from these areas, it is likely that while early design works will be carried out by UK firms, these nations will turn to local resources for further development of these projects鈥�.

Legal

Business owners risk creating serious problems for their business and family by failing to make a will. The warning comes from law firm Mace & Jones, after research from Lawpack showed that almost two-thirds of Britons have not made a will.

鈥淔amilies can fall out, particularly if the child working in the business is expected to purchase their siblings鈥� shares, even if the other siblings have never worked in the business or contributed to its success,鈥� says wills and probate partner Peter Houghton.

For partnerships or businesses with shareholders, care needs to be taken to ensure the will is compatible with the structure of the business. A will can help family businesses qualify for exemption on inheritance tax.

Business awards

Nominations for the British Small Business Champions Awards 2007 are being sought by the Federation of Small Businesses. The annual awards were launched by the FSB to recognise the achievements of UK small businesses. They are open to any small business that has traded for at least five years that is well run, highly regarded by staff and customers and is, preferably, involved in its local community.

Entries will be allocated to one of six UK geographical regions: Central, North, South, Wales, Scotland and Northern Ireland. Each will have a regional awards dinner, where the regional champion will be announced. The six winners will go forward to the final.

For details, go to

Companies act

Companies will no longer have to have an AGM or to employ a company secretary when the latest set of revisions to the Companies Act come into
force in October 2008.

The Act includes measures that:

• Give greater clarity on director鈥檚 duties
• Give directors and shareholders the option of filing a service address, rather than a private address, for public record
• Introduce a new offence of knowingly submitting a misleading, false or deceptive audit report
• New model articles.

The government claims the Act will help save businesses up to 拢250 million a year, including up to 拢100 million for small businesses.