Construction Industry Upturn

Construction Industry Upturn The results suggest that the construction and new build sector has bottomed and is indeed recovering, albeit slowly. He explains that in order for the Group to ride out the recession, it explored new markets both in client type and geographical spread. The Group also used the downturn to sharpen skills in all elements of the business and green building in particular. He continues, "One of the biggest factors that could put the industry back on track and provide sustainability is the releasing of state funded projects. " The new avenues that GVK has pursued during the downturn have facilitated a more rapid recovery for the Group. GVK has been fortunate in that we have been very prudent with preserving cash and are able to fund the additional work that we are securing. This has certainly provided a light at the end of the tunnel," shares Williams. "As the President mentioned in his State of the Nation Address, 'Government alone cannot solve the challenges faced by the country'. However, this will be the toughest year for the industry. To this end, one of the group's companies was involved in a pilot project to introduce green building principles and methodologies in the eco-sensitive Kogelberg Biosphere Reserve. Many of our colleagues in the industry are sceptical; however government has shown a new determination to make this happen. For instance, as a result of pursuing work in neighbouring countries, GVK has recently secured work on several projects including a substantial one in Namibia valued at R70 million. Like most companies, we are now starting to pick up more work. It takes substantial cash resources to fund that increase in work and this is where those companies that have been sailing a little too close to the wind will feel the pinch which will result in further closures. The big question, of course, is whether they will be able to deliver this in the timescale that they anticipate. The CEO concludes, "It has become clear that the lessons learnt from what is certainly one of the industry's worst recessions in 50 years, are going to position us to make use of the growth opportunities once the market turns and take our business to new heights. Construction Industry Upturn Trade News selected by Local Linkup on 13/04/2012