Subbies Pay Trends Report July 2012

by Editor on August 12, 2012

With over 100,000 labour-only subbies, all of whom are accepted by HMRC as self-employed, Hudson Contract saves companies money, eliminates unnecessary risk and takes full responsibility under the Construction Industry Scheme (CIS).  Guaranteed.

Here’s Hudson Contract Services latest report on pay trends for subbies in the UK construction industry.

Who are Hudsons?

I use Hudsons to pay any sub-contractors I employ. The small amount it costs for each payment is well worth the peace of mind of knowing I’m complying with tax legislation. For more info about their subbies CIS services you can contact me here. Please include you company name and contact info.

Subbies Pay Trends Report July 2012

Hudson Contract delivers the most accurate indications of pay trends across the construction industry, using payroll data for over 1,600 construction companies and over 100,000 freelance builders to publish the average pay for the full spectrum of 17 different trades across five regions.

What a turnaround from last month.  After three consecutive months of declining earnings, pay trends have bounced back – and are up by as much as 5.7% in the South-East and 4.8% in North-East England.   “It’s an across-the-board recovery with earnings up across all regions,” comments Hudson Contract Managing Director David Jackson. “In fact, with three-quarters of our 85 different regional trends showing an increase on average earnings compared with three months ago, we are getting back to the rates seen at the start of the year.”

Earnings highlights:

  • Those working in general construction, civil engineering and equipment & operator hire are nationally all showing increases, ranging from 2.4% for North-West based general construction operatives to an increase of 18.7% for equipment & operator hire based in the North-East.
  • Bricklaying, traditionally the construction industry barometer, has also seen some impressive gains in the last three months, especially for those based in the North, which hopefully bodes well for other sectors in the coming months.
  • However, 25% of the sectors we monitor as still lagging behind.  This month’s losers are  Midlands based plasterers: down 16.5%, Electricians in the North-East: down 12.%, Insulation specialists in South-East England: down 12%
  • And this month’s winners are: Bricklayers in the North-East: up 24%, Joiners in the South-West: up 20%, Equipment and Operator Hire in the North-East: up 18.7%

David Jackson adds: “It would take a brave man to predict we’ve reached any kind of turning point. According to the Financial Times, production of bricks has dropped by two-thirds since 2007. Furthermore, New Civil Engineer reports that the falling cost of construction over the past twelve months means the UK is now a cheaper place to build than New Zealand and Qatar.   “Maybe the British economy will benefit from a post-Olympic feel-good factor, which might, in turn, benefit the construction industry. It would be nice to think so. But equally, the impact of the public spending cuts must still be taken into account.”

More About Hudson’s bold promise

Hudson Contract is the only CIS service provider in the UK with HMRC and employment tribunal case law in its name.  The various High Court rulings and other judgements in our favour enable us to do more than simply manage the risks of CIS – we actually eliminate them on your behalf.  For more info Contact Steve and please include you company name and contact info.

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