Construction Cuts
Posted on: 30/09/2014

In recent months we have seen a dramatic increase in the Building Services division here at Blueprint; compared to previous years during the recession that’s for sure. It seems that there has been a role reversal in regards to contractors looking for work to companies struggling to find contractors.

However, in light of articles such as the one by Joey Gardiner on 25th September 2014, it could be set to change. In his article, Gardiner notes that one of the largest private clients in the construction sector is looking to further cut spending in the wake of the £250m profit warning announced this week. While Tesco has in the past asked for rebates from contractors and consultants, supply chain sources said it was unlikely that this will be behind the £250m shortfall.

So what does this mean for the construction industry, could it be a domino effect waiting to take place or could it just be an ill-fated anomaly?

Unfortunately, considering other news written by Vern Pitt on 25th September 2014 it could in fact be the beginning of a decrease in jobs within the construction sector. Pitt writes that Atkins, a worldwide consultant, has cut jobs in the UK and European business in response to “utilisation issues”.

It said: “We have responded to utilisation issues in our aerospace and water and environmental businesses by making staff reductions and redeploying staff in both businesses during the first half.” Atkins have also reported that it had incurred £4.5m of “exceptional costs” since April 2014 on an “unsuccessful pursuit of a significant acquisition opportunity”.

This news will not come lightly to those who are aware of the industry, as they are one of the big players in the construction world. It is likely that these costs relate to the firm’s bid to buy consultant Parsons Brinkerhoff from Balfour Beatty, in which they lost out.

With both of these articles combined, it is increasingly worrying how the larger companies are making cut-backs, as it may filter back to the contractors already working for these firms and future job opportunities.

Our Building Services division here at Blueprint are aware of these changes occurring in the industry. Nonetheless, we are staying focused on providing our contractors and clients the best service and continue to stay positive moving forward.

 

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