The Entire Construction Sector Is So Inherently Connected Issues Can Widen Very Quickly

The supply chain is a finely balanced set of connections, as the majority of managers know and injury to the chain can have a serious impact on your own business success. This is a concern for many different kinds of markets as they typically have virtually no control over the other businesses that they work with. This is particularly so in the construction industry. It goes without saying that there are hundreds, maybe even thousands of businesses who offer similar services to each other but most of them will be emerged in to supply chains with other collections of businesses and most of their undertakings will be with this collection. In construction there are lots of manufacturing processes necessary along with numerous trades, professions and fittings manufacturers. So within one chain you will see the architects and engineers the steel fabricators the construction team working in conjunction with producers of industrial doors, roofers, plumbers and the list goes on.

Picture then if there are problems with some of the individual companies in the group. As they are all inclined to some degree or other to work with the same companies these problems can have a detrimental effect on what appears to be seemingly unconnected company along the process. This is particularly the case of the major contractor. If problems come up with that company, if jobs dry up the knock on effect reverberates both up and down the whole chain and could even ruin some smaller businesses who do not have other work outside the contaminated chain.

So in this hard economic position where many public sector construction plans have been put on hold or even cancelled, it is easy to see how the problems can have a knock on effect. The designer is not commissioned to draw, the industrial door producer is therefore not chosen by his team who recognise the benefits of his design; the steel frame is not engineered or produced and no fixtures and fittings are required. The outcome can be devastating.

The message is as usual, do not put all your eggs in one basket, the risk is too big and your likelihood of getting through the downturn impeded.