Responding to Political Uncertainty
Recent political events such as the Brexit vote and the British election result have led to uncertainty in the construction industry; this is true particularly with regard to projects in the City of London and other major business centres. Jamestown Manufacturing Ltd. recognises these challenges and is ready to respond.
Reduced Confidence and Higher Costs
Capital investment is reduced when the likely return on investment is unclear, though this may in part be offset because the weaker pound can lead to increased foreign capital investment. The decline in sterling value is prompting an increase in the prices of imported construction materials. Energy costs are also set to rise in the near future.
Responding to Increased Competition
As a result of these factors it is probable, at least in the short to medium term, that there will be increasing competition for construction contracts. Already it has been noted that some anticipated large contracts in the City are being delayed. At Jamestown, we are preparing to defend our market share by improving our workforce skills and investing in technology.
Our Apprenticeship Programme
The skills shortage in the construction industry is widely acknowledged. By developing our apprenticeship programme, we will strengthen our workforce and at the same time increase its longevity.
Investment in Technology
Our continuing investment in the latest plasma profiling technology will enhance our responsiveness as well as increasing our capacity. We will be seeking other opportunities to increase our competitiveness by investment in technology.
Protecting Our Market Share
Our flexibility and responsiveness to customer needs form the core of our business, and these strengths will be crucial whilst the business environment faces uncertainty.
The Royal Institute of British Architects (RIBA) produces a monthly report detailing its members’ expectations of future changes in demand in the construction industry. Their June 2017 report is optimistic, with a small majority of architects expecting a rise in commissions in the near future. The overall picture is therefore not wholly discouraging: uncertainty is unavoidable, but we at Jamestown have confidence in our ability to handle it.