Research from Bibby Financial Services has revealed that more than half (55%) of small businesses in the construction industry are already passing on increased costs incurred by the fuel crisis to their customers.

Of the businesses surveyed, a massive 93% of owners and managers of construction companies said they were feeling the effect of rising fuel costs on their business, with almost half (42%) looking for ways to diversify and grow their business in order to cope with higher prices. While over a quarter (27%) are already championing cost reductions by cutting how much time they spend on the road, almost one in five have also seen staff pushing for higher fuel allowances (16%).

A North/South divide is also evident with a massive 83% of owners/managers in the North of England citing the rising fuel costs as the key transport issue affecting their business, 10% more than business in the South (73%). Region by region, it is those businesses in the more rural area of East Anglia that are feeling the greatest affect of the fuel crisis (96%), and industrial areas such as the East Midlands (90%) and the North West (89%).

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Around a third of businesses in the Midlands and the South (27%) are already responding to the fuel crisis by reviewing their company vehicles and making plans to introduce more efficient models - this figure is nine per cent more than in the North (18%). Despite businesses in the North citing the fuel crisis as having a major effect on their operations, they are slower to present a solution to the problem than other parts of the UK.

David Robertson, chief executive of Bibby Financial Services, said: "The fuel crisis is on everyone's minds at the moment and has become a very public issue overnight. This survey gives a voice to the impact that heightened transport issues, particularly surrounding fuel costs, are having on Britain’s small and medium sized businesses.

"There are many companies already carrying out and planning solutions to the problem of increased fuel costs, which is encouraging but the majority of businesses are yet to take action. Owners and managers of in the construction industry must take steps now to fortify their cash flow and reduce the risk of the fuel crisis on their business from being any greater than it already is."

(GK/JM)