Small builders report record turnover
Small construction companies recorded record turnovers in the third quarter of 2011.
ING Bank reported on Thursday that construction companies with less than 10 employees are often active in the maintenance sector which is relatively impervious to economic fluctuations and strongly benefited from a temporary VAT reduction.
After experiencing a low point in early 2010, turnover of this type of business has grown by 16.5 percent on average, whereas medium-sized and big construction companies only grew by 6.5 and 2.5 percent respectively.
As the small construction companies suffered few ill effects from the economic downturn and the accompanying reduction in demand, they benefitted fully from the temporary reduction of the VAT rate, which took effect in October 2010 and ended one year later.
An exception to the rule is formed by small infrastructure companies, which suffered from regional and local budget cuts and the recession in the housing industry.
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