Fexco will attend the The 5th Annual National Construction Summit which is being held on 14th March 2019 in the Citywest, Dublin.
The event will bring together over 2000 construction companies, developers, policy makers, builders providers and more to connect stakeholder’s involved in the finance , design, construction and management of Ireland’s buildings, infrastructure and industrial projects.
Brexit and its implications will also be high on the agenda. Should the UK follow a disorderly Brexit there could be significant cost implications for construction and associated businesses in the supply chain. This is an industry heavily reliant on the UK for both the import of materials and the export of services. Foreign exchange fluctuation will certainly play a part as the cost of goods and services could be negatively impacted by expected movements in currency.
Due to its higher exposure towards the UK, Irish imports will be slightly more affected than exports. In a recent RTE news report , Fine Gael TD Maria Bailey said that 50% of plumbing materials and 30% of wood products used in Irish building projects come from the UK.
New costs could also arise due to diverging regulatory requirements. Because each EU member state has a notifying body to certify certain standards for building and construction equipment, any products made in the UK would need to be certified to EU standards. This fear is also felt by Construction Industry Federation members where a recent survey revealed that the biggest concern (80% of respondents) is a rise in the cost of materials in a post-Brexit environment. Most of the businesses questioned expect supply chain difficulties and delays will be their biggest challenge after Britain leaves the EU.
Cutting payment costs in uncertain times – fintech to the rescue
Cash management is an added concern for most construction companies. Currency volatility is creating challenges for firms making cross border payments to suppliers, especially smaller businesses which traditionally make spot payments instead of having an effective hedging strategy in place.
Speaking ahead of the National Construction Summit where he will also be speaking about ‘International Payments in a Changing World’, Billy Farrell of Fexco’s Corporate Payments division commented, “more and more businesses in the construction sector are benefiting from the value and services provided by fintech companies who are investing in innovative technology to provide faster and cheaper payments. In a sector which receives negative publicity for its culture of late payments and a hesitancy to embrace automation, it is fundamental that more construction businesses should be enabling themselves with modern cloud systems for accounting and payments. When firms are looking to cut costs and create efficiencies in its operations, the finance function is an obvious but often overlooked area. With an automated cloud-based payments process, finance has the visibility, flexibility and control over the timing and processing of payments. A construction manager can be onsite and review, authorise and schedule payments without having to return to the office to write cheques and sort documentation. This translates into faster payment cycles and the timely completion of important projects.”
For a free healthcheck on your existing currency payments and advice on how to transform your payables with a streamlined solution, come and chat to Billy Farrell and Helena O Dwyer at Stand K07 at the National Construction Summit on the 14th March.
For further information please contact:
Billy Farrell – Email: BFarrell@fexco.com Phone: 087 9077714
Helena O Dwyer – Email: firstname.lastname@example.org Phone: 087 2169497