{"id":122714,"date":"2023-03-13T16:55:33","date_gmt":"2023-03-13T16:55:33","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=122714"},"modified":"2023-03-13T16:55:33","modified_gmt":"2023-03-13T16:55:33","slug":"recession-resilience-what-construction-can-learn-from-historic-challenges","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/recession-resilience-what-construction-can-learn-from-historic-challenges\/122714\/","title":{"rendered":"Recession resilience- what construction can learn from historic challenges"},"content":{"rendered":"

Adrian Buttress, managing director of specialist supplier PermaGroup<\/a>, describes why the construction industry has more resilience to recession than you might think<\/h2>\n

Hearing talk of a \u2018looming recession<\/a>\u2019 is certainly unnerving for most people \u2013 but for those in the construction industry, this is familiar territory. Going back as far as 2001, supply chains have faced multiple episodes of uncertainty and resilience, closely aligned with political and economic upheaval.<\/p>\n

Despite promising growth in the construction industry, and more than half of companies (57%) predicting an increase in revenue for the next financial year, there are still concerns for how businesses are going to fare in 2023 and beyond in terms of recession resilience.<\/p>\n

There will always be a need for construction<\/h3>\n

In a recession, the major challenge is cash flow, and with so much uncertainty, consumers and investors can look to hold back their spending. But there are ways to ensure your business cashflow is supported through different means. Assessing the decisions in your operation can ensure investments are being made wisely and the focus is placed where it is needed.<\/p>\n

In addition, consumers, clients and other suppliers will also be looking at their cashflow so it\u2019s essential that there is a joined-up approach<\/a>. During challenging times like these, businesses have got to think differently and be creative to work towards a positive outcome.<\/p>\n

While it can feel like a doom and gloom situation, it\u2019s important to remember that even in testing times, all manner of construction services are still needed.<\/p>\n

Making the most of all potential opportunities should be the primary focus, and PermaGroup has found these tactics to be particularly effective:<\/p>\n

Education and visibility<\/h3>\n

One thing to consider is how your service or product is being perceived by the industry and the consumer. With funds being tight many will look to cut corners and make savings wherever possible \u2013 this could include choosing lower grade products, or services that turn about to be inefficient. Not only does this risk businesses losing out on sales, but the ramifications are huge should services such as roofing be carried out incorrectly<\/a> or using low quality materials.<\/p>\n

As part of our PermaRoof division, we\u2019ve been trying to combat the increase in use of unbranded products as a cheaper alternative, through education on the risks of subpar product testing and a lack of warranty.<\/p>\n

Education is key to ensuring information is accessible and relevant, so customers are not making costly mistakes. As experts in the industry, it\u2019s our responsibility to educate on best practices, including the implications short term cost saving can have on long term quality.<\/p>\n

Improving your business\u2019 visibility alongside this means customers know where to go for the best advice and reliable products. One way to increase visibility is through prioritising marketing methods to ensure you\u2019re at the forefront of the industry as the recession develops.<\/p>\n

Restructure or rethink<\/h3>\n

To make your business work more efficiently you could also consider restructuring the team \u2013 firms need to be adaptable to match the climate. For example, if the aim is consumer sales over trade, then this is where the workforce needs to be focused. It\u2019s about seeing what areas need support, how you can transfer your team\u2019s skill set so they\u2019re still an asset to the business and where investment is going to have the most impact<\/a>.<\/p>\n

In addition, think about your company processes and whether there are ways to bring them in-house or purchase products closer to home to reduce the cost of shipping and delays. This is particularly important for businesses relying on imports from China, where government relationships have shown evidence of breakdown. During challenging times, many business owners feel forced to make quick, instinctive decisions, however, taking a step back and rethinking your ways of working can make a huge difference to future success.<\/p>\n

Communication and relationships<\/h3>\n

Sometimes the most important methods for enhancing resilience are the simplest \u2013 this includes strong lines of communication with the supply chain,<\/a> customers and employees.<\/p>\n

Where finances are concerned, people want to know their options and have no unexpected costs. Keeping in regular contact with the entire supply chain, all the way through to the consumer, will ensure any potential issues like poor cash flow are flagged early enough to be actioned. If needed, discuss options for spreading costs through financial plans \u2013 but be mindful of where money is owed and deadlines.<\/p>\n

Where customers choose to stay loyal to your business, it\u2019s a good chance to reward those relationships with great service or offers when you can. Prioritising longstanding clients, rather than looking to cash in on new business is always beneficial for all parties. People will always remember who looked after them in difficult times, and it safeguards future business.<\/p>\n

Staying positive is a aspect of recession resilience<\/h3>\n

PermaGroup has not been immune to the turbulence of the last two decades \u2013 we first opened our doors in 2000 and have learnt from challenges such as the 2008 recession. For anyone who has been through the more recent market changes such as Brexit, Covid-19, and the war in Ukraine<\/a>, there are also many experiences to draw from. The construction industry can learn so much from its past and reapply many of the tactics used previously to handle what comes next.<\/p>\n

It\u2019s important to remember however, that in spite of the economic situation, construction services are still very much needed and customers will be reliant on suppliers and products they can trust. The work is there, and there is enough to keep the industry resilient<\/a> even in the face of a recession.<\/p>\n

It\u2019s also a timely reminder that in the most testing times, it is vital the industry pulls together rather than trying to survive it alone. We firmly believe this is what has enabled our business and others to continue to grow and what will protect our future.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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