Insight Data explain importance of tracking financial performance in today’s climate

Alex Tremlett, Operations Manager at leading data specialists Insight Data, reveals why it’s more important than ever to check the financial performance of a company before signing on the dotted line.

“From looking closely at the total number of companies registered on Insight Data’s unique Construction File Database, we can see there has been a 12% drop in the number of large construction firms with a turnover of over £5 million, this year compared to August 2021[1].

Although this shows that the number of construction industry insolvencies have spiked within the last 12 months, closer analysis of the data found that the average credit rating of these remaining companies has risen by 5%[2].

This demonstrates that while there’s less companies in the industry overall, the ones that remain are proving to be more financially stable.

However, the industry isn’t out of the woods just yet, as research by the Office for National Statistics reveals that the total number of construction new orders decreased by 10% between April and June of this year, when compared to quarter one of 2022[3].

So, even though companies are currently financially sound, if the number of new orders continue to decline, businesses will no doubt start to feel the pinch as there will be less work available throughout the built environment.

For companies operating within the construction sector and supplying building products, equipment, training or business services, it’ll be more important than ever to have access to accurate and reliable financial data, so they confidently know they’re targeting the most viable prospects.

The financial snapshot

One of the most effective ways to double-check the financial position and credit rating of a potential prospect is by relying on a relevant and up-to-date online platform.

At Insight Data, we’ve developed a specific element to our existing CRM system. This means we can provide our customers with a snapshot of their prospects’ financial information to make sure they only deal with financially sound companies.

This business intelligence is priceless and has successfully helped hundreds of sales teams use their time more effectively, by avoiding approaching prospects that simply wouldn’t make suitable customers.

Save time and resource

With access to the most accurate financial information, a company is guaranteed to get results and we understand the importance of a business being able to save time and resources, particularly in today’s climate.

So, we’ve created an effective way to provide the breakdown of any limited company’s financial information in an easy-to-understand format.

Our system includes details on credit status, credit rating, recommended credit limit, if there are any County Court Judgements against them and their network – helping companies to make informed business decisions.

With the current uncertainty of the market, this tool is extremely valuable, especially if you supply to the construction industry.

Designed to help companies operating in the built environment, Insight Data’s fully integrated sales and marketing platform, Salestracker, provides in-depth market intelligence in real-time.

What’s more the exclusive Construction File database provides comprehensive information on over 5,000 senior decision-makers in 1,100 organisations of the UK’s largest construction firms.

Therefore, customers with access to this specialist database can pinpoint their clients including property developers, house builders, main contractors, and property maintenance companies, faster and more efficiently.”

Insight Data is one of the UK’s leading business-to-business data providers who specialise in the wider construction sector. Its unique market intelligence enables companies to create highly targeted marketing campaigns for prospective customers and helps to build a more successful, profitable and valuable business.

For more information on Insight Data and how Salestracker can help you to track the financial performance of a prospect, visit: https://www.insightdata.co.uk/salestracker/

Sources

1: Percentage calculated from Insight Data Construction File database. In August 2021, there were 1,255 large construction firms with a turnover of over £5million and 1,099 in August 2022.

2: Percentage calculated from Insight Data Construction File database. In August 2021, the average credit rating was 67.57, while August 2022 was 71.03.

3: https://www.ons.gov.uk/businessindustryandtrade/constructionindustry/bulletins/constructionoutputingreatbritain/june2022

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