Downturns and turnarounds

As the news from the financial sector shifts the national climate from autumn chill to settled depression, we’re all trying to work out the implications for the sector. Should journalists and construction companies concentrate on the rays of sunshine between the clouds, the hospitals and schools and social housing projects that are still going ahead? Or should we switch focus to sunnier climes overseas, where projects are backed by Asian sovereign wealth funds or Middle Eastern oil dollars?

But there are some things we can know for sure. We know, for instance, that the industry is a very different place than it was in the recession of the early 1990s. Since then, its largest employers have hugely diversified and internationalised their businesses, leaving them better equipped to ride a downturn. Supply chain integration is becoming a reality, with contractors now knowing how to look after supply chain partners. And the industry has embraced innovation in all its forms – from new construction technologies to delivery models to new approaches to regenerating communities.

So when it comes to harder times, the industry doesn’t have to revert to the old ways. As our credit crunch feature shows, a £110bn industry with a track record in reinventing itself has the muscle and flexibility to raise its own prospects.

Contractors, clients and consultants can work together to squeeze out inefficiencies and help make projects stack up. Housebuilders and contractors can talk to landowners about innovative ways of delivering housing – as is happening in Barking and Dagenham.

Yes, the situation is worrying. But the industry has many more cards to play than it might think.