The UK construction industry is expanding again according to recent data, showing sustained growth for the first time since the downturn began in 2007. Construction projects can often require significant investments of time and money, two quantities that disappear quickly when confidence in the economy takes a hit.
“The industry has really been hit by the recession but it’s been a sea change since the new year,” says Geoff Banks, a man who wears several hats. He’s the Managing Director of G J Banks Isle Of Wight Limited and he’s also the Chairman of the Construction Hub of the Isle Of Wight Chamber Of Commerce. “We’ve had atrocious weather recently and the industry’s turnover is very weather dependent. We always lose time in the winter but the last few months have been particularly abysmal. Even taking that into account, it does look like a corner has been turned. The general feeling is things are improving.”
It’s been a long time coming. As the recession bit deeper Geoff says that on the Island it was the smaller companies that were the most badly hit. “Lots of family and small to medium size businesses stopped trading. The companies that have survived should now start to find full order books. Hopefully we’ll see some of those mothballed development sites on the Island moving forward. The concern now is that if demand continues to grow there might not be the capacity. Contractors tell me there’s an upturn and an inordinate number of quotations and tenders going out. People have lacked enthusiasm in the last few years, whether that’s for house building or home extensions.”
Working on infrastructure contracts kept many businesses in jobs and profitability. Geoff points out that a lot of the current housing projects have been in the pipeline for a while, possibly several years. The recession has changed the nature of the business but clients have changed too.
“People are less inclined to move these days and there are lots of extensions and home improvements going on. These things are keeping construction industry personnel in work on the Island. Generally, the requirement is there for residential housing but the development envelope has been encroached so much that we’re now looking at brownfield, even green field sites on the Island. That does play into the hands of the major developer who can take on the larger sites.”
Geoff has been in the industry for over 50 years, running his family business for more than thirty three years. GJ Banks (IW) Ltd is a specialist contractor, working with heritage and churches, including mainland work. Geoff has always dealt with the downturn by looking for new opportunities.
“If you were a run of the mill contractor in the recession then you had a problem. It was highly competitive. We had always specialised and the recession focussed us into furthering that path, . I’m always quite willing to adapt and adjust. I’m a bit of a risk taker. At one time we were the largest underpinning contractors for insurance companies on the Island and along the south coast. We ran up to nine gangs. Now it’s a case of knowing the niche markets. English Heritage has made big listings of buildings that need preservation and I saw that as a positive opportunity. There was also money available from the Heritage Lottery although that was impinged upon by the 2012 Olympics. We’re now a preferred contractor for English Heritage.”
“We’re currently coming to the end of our work at St John’s Church in Wroxall. We’re also working at the Royal Yacht Squadron and we’ve won a major contract at All Saints church in Godshill and another near Liss in Hampshire. Our business is 50% heritage and of that, probably 75% is ecclesiastical.”
G J Banks (IW) Ltd has a highly qualified team. Their stonemason foreman worked on Winchester Cathedral and their work on St Mildred’s Church in Whippingham picked up an award from English Heritage. Geoff notes that “heritage work is only as good as the amount of funding it’s getting,” but he sees a positive future.
“It depends on your attitude as well as your aptitude. We’re here to employ and we’re here to stay. We cost our jobs properly and when we tender we know we can deliver. We have an expertise in the heritage work and our team all enjoy it. I’m a great believer that you have to enjoy your work. I used to be engaged in housebuilding and I found it profitable but absolutely boring!”
First published in the May 2015 issue of Island Business magazine.
