Construction sector
The impact of the economic slowdown is starting to further affect the construction supply chain, with news that Bardons have laid-off all their employees at the quarry until further notice.
The staff expect to be taken back on again in perhaps a month or two, and there is no doubt that the weather has played a small part in the whole affair, but it is significant that the impact is now moving up the supply chain, as well as down.
I probably keep sounding like a doomsayer, but the signs I am seeing are not good at all. I treat the construction sector as a leading indicator for the economic health of the islands, and it certainly impacts across a wide range of goods and services.
With some (major) contractors doing work at cost, just to keep their employees in jobs, then the seriousness of the impact cannot be understated.
No-one can point to any significant construction work in the pipeline, and this is simply removing any security that the employers and employees may have had.
We have escaped the worst of the recessional to date, but I think the impact will be in 2010.
The staff expect to be taken back on again in perhaps a month or two, and there is no doubt that the weather has played a small part in the whole affair, but it is significant that the impact is now moving up the supply chain, as well as down.
I probably keep sounding like a doomsayer, but the signs I am seeing are not good at all. I treat the construction sector as a leading indicator for the economic health of the islands, and it certainly impacts across a wide range of goods and services.
With some (major) contractors doing work at cost, just to keep their employees in jobs, then the seriousness of the impact cannot be understated.
No-one can point to any significant construction work in the pipeline, and this is simply removing any security that the employers and employees may have had.
We have escaped the worst of the recessional to date, but I think the impact will be in 2010.
4 comments:
I thought school construction was due to start in the spring?
11:48am
And who are the tenderers for the schools contract? They are all mainland firms. And just for info the tender documents haven't even been issued yet....
Is any council department cutting back or are they to busy looking for work for the contractors
I don't think you are being fair in saying this "lay off" is as a consequence of the credit crunch and local economy. Historically "Tawse" always laid guys off at the turn of the year -even when the weather was not bad.
You cannot work on concrete, cement or tar in consistently -deg temps. We have now had 23 consecutive ddays of freezing temps which is probably a first in these islands since met records began.
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