The Entire Building Industry Is So Inherently Related Issues Can Extend Very Quickly
The supply chain is a finely balanced set of connections, as many managers know and injury to the chain can seriously impact on your individual business performance. This is a concern for many different kinds of markets as they generally have very little control over the other businesses that they work with. This is especially so in the building market. It goes without saying that there are 100’s, possibly even 1000’s of organisations who provide similar services to each other but most of them will be submerged in to supply chains with other groups of businesses and most of their undertakings will be with this chain. In building there are many manufacturing processes required together with multiple trades, professions and fittings manufacturers. So making up one chain there will be the designers and engineers the steel workers the construction team working in conjunction with makers of industrial doors, glazers, plumbers and the list goes on.
Picture then if there are issues with some of the single businesses in the chain. As they are all inclined to some degree or other to work with the same companies these issues can have a devastating effect on what appears to be seemingly disparate business along the process. This is predominantly the case of the major contractor. If issues arise with that company, if jobs dry up the knock on effect reverberates throughout the entire chain and could even ruin some smaller businesses who do not have other work outside the contaminated chain.
So in this tough financial situation where lots of public sector construction projects have been delayed or even binned, it is straightforward to see how the issues can cause issues elsewhere. The architect is not commissioned to draw, the industrial door maker is therefore not specified by his team who realise the capabilities of his offering; the steel work is not designed or manufactured and no fixtures and fittings are required. The results can be catastrophic.
The answer is as always, do not rely on one source of income, the risk is too large and your likelihood of surviving the recession impeded.
Filed under Blog by on May 22nd, 2011. 
