Hard Times & Harsh Weather Impact Upon Local Contractors
01.02.10
Comment enquired of some of the larger construction and landwork businesses about how they are coping in the current climate
Aberfeldy Groundworks Ltd
Stuart Granton, MD of Aberfeldy groundworks noted that the severe and extended bad weather conditions have impacted on the company’s contracts and some of his customers have postponed operations and temporarily closed construction sites.
He said: “As a result, we have had no option but to temporarily introduce short term layoffs and reduced working hours to protect the future of the company.”
Elaborating, he said: “It is unfortunate that we were unable to secure snow clearing work, as has usually happened in these circumstances, to offset the lack of work elsewhere. Contractors from outwith the local area were tasked with work that would have normally been resourced within Aberfeldy. So, we considered it prudent to take these temporary measures to ensure the long term future of all of the employees.”
Stuart Granton added: “We anticipate that, as weather improves and contracts re-start, the workforce will return to normal capacity. We are continually monitoring the situation and, like most, would like to see normal service resumed as soon as possible.
On going to press several men had already returned to work and the latest position was that 10 were still temporarily laid off out of a total number of 53 employees.
Ravenswood
Director of Aberfeldy-based Ravenswood Ltd, Gordon Leighton, told Comment: “Two major projects originally scheduled to commence in late November had to be postponed until the spring of this year, due to clients’ delays in obtaining planning consent. As a result we were unfortunately forced to lay-off six of our men, hopefully only until March/April when the postponed work should re-commence, depending upon weather conditions.”
He added that ordinarily the company would have sufficient reserves to support its entire workforce during a brief downturn, but it had sustained a number of recent bad debts recently. “It is especially galling that...the company has been forced to spend tens of thousands of pounds pursuing these bad debts through the courts, where only the lawyers win in the end,” he said.
On a much brighter note, he added that throughout the difficult trading period his company had been helped by its suppliers, who had proved really supportive.
Barhaul
Patrick Bradley MD of Barhaul Ltdon Aberfeldy Industrial Esate reported: “Since one member of our staff retired last October our total payroll of 35 persons remains constant. I do not envisage any lay-offs in the foreseeable future and we are attempting to protect our staff by bringing more of the work in house.
He explained that this has meant investing in more workshop facilities and tooling but it keeps two people employed.
Regarding the state of the business climate he observed: “We do not enter many fixed price contracts preferring, instead, to charge competitive rates for plant and operatives which gives our customers the benefit of any savings we can make.
“We are experiencing competition from Jarvie Plant. They now have a rep in the area one day per week attempting to hire to local companies on the same basis as we do. We do not see this as being a major threat as we have built up a fairly loyal customer base in this area. We are also able to be more flexible about hired in plant insurance than large competitors can be.”
He added that his company continues to support local companies and that it becomes immediately suspicious of any requests for hires or services outwith our local area.
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