Noel Elliot P Elliot MD

Full Steam Ahead

Far from being distracted by gloomy economic predictions, main contractors are fighting tooth and nail to secure their slice of commercial work

Noel Elliott, managing director, P Elliott & Co

Are the good times over for 2008?
The fundamentals of the economy are still in very strong shape. The industry has sustained a huge level of growth over the last eight to 10 years, particularly in the residential sector. Many in the industry have experienced only the recent type of frenzied growth which has brought some disadvantages as well as many advantages.

What areas do you expect to see growth in the next 12 months?
This year will see growth in retail, industrial, the office market is still buoyant particularly in the major cities, and the infrastructure and civils market remain buoyant.

What is the biggest threat to new business at present?
I believe that the cost base in the Irish economy continues to require correction and people’s expectations must regularise somewhat. The biggest threat however would be where we would talk our economy
from correction into recession.

What should general contractors be doing to secure new work in 2008?
Contractors need to concentrate on the sectors of their business where they are most positioned to deliver value for money and efficiency. I don’t believe that business will be done through fatter marketing budgets. Business will be done by doing the simple things correct and continuing to keep an eye on cost bases.

TJ Walsh Townlink MD

TJ Walsh, managing director, Townlink

Are the good times over for 2008?
We’re pricing lots of work and we’re also submitting lots of pre-qualifications. So there seems to be a lot of contracting work around. I haven’t noticed a change in the work developers are bringing to the
market in the last six months.

What areas do you expect to see growth in the next 12 months?
Education, general office fit-out and commercial, working for the HSE, projects in the range of €2 - €5 million. Work for the local authorities, Dublin City Council. The lean is definitely on public sector work.

What is the biggest threat to new business at present?
There’s a trend towards a lot of design and build work where contractors are being asked to submit a tender that includes the design. The public sector is pushing that in a big way and that’s a bad trend. It’s handier for them as it’s less risk, and it’s being driven also by the new forms of contract.

What should general contractors be doing to secure new work in 2008?
The threat for us is that it’s competitive, it’s really competitive. We would find that sub-contractors have less work and they are laying off staff. There is a turndown in activity for sub-contractors. But
in turn it gives us more to choose from and it makes them cheaper. “ The lean is definitely on public sector work

Don O Sullivan CIF Director of Contracting

Don O’Sullivan, Main Director of Contracting, CIF

Are the good times over for 2008?
With the reduction in housing output at present, there may be a knock on effect in terms of site preparation work and indeed apartment construction, resulting in a reduction in work in some areas for general contractors. However, I remain optimistic about this area of the industry for the year ahead.

What areas do you expect to see the most growth in the next 12 months? Recent research has indicated there is potential in the hospitality sector, such as hotels and pubs and recreational facilities. In the medium to long term there is significant growth potential in the whole area of energy efficiency with a move towards more retro-fitting of existing buildings.

What is the biggest threat to new business at present?
The biggest threats to new business vary from economic challenges from a global slowdown to domestic threats such as consumer confidence and pressure on the financial sector.

What should general contractors be doing to secure new work in 2008?

Clients, whether they be in the public or private sector will ultimately decide what level of new work they will commit to this year. In order to remain competitive with their tenders, they must ensure that they increase efficiencies across all areas. Far from being distracted by gloomy economic predictions, main contractors are fighting tooth and nail to
secure their slice of commercial work.

This article is an extract from the February edition of Irish Construction Industry Magazine - Click HERE to Subscribe