Resilience to recovery: The future of UK construction
Resilience to recovery: The future of UK construction
The resilience and performance of any
Supply chain strategies
business is dependent on the strength of its suppliers
But this is perhaps even more the case in the construction sector, where subcontracts are an inherent part of project delivery strategies, and where the reliable availability of raw materials can choke or entirely stall a project’s progress.
It’s encouraging to see that over two thirds (69%) 4 of the firms we surveyed said they were confident that all businesses in their supply chain would trade through the next 12 months. And businesses are taking proactive actions to further mitigate the effect of supplier failure on their own businesses. This includes shortening their own payment terms (38%) to require suppliers to pay them sooner – a move that could put additional pressure on their supply chains.
Other measures include swapping financially weaker suppliers for stronger ones (34%), enhancing due diligence and performance monitoring (34%), tightening credit procedures (34%) and diversifying their supplier base (32%). These are all prudent measures at such a testing time. And – to the point of supply chain resilience – it may be that some of the firms that told us they would be looking to acquire another business may be targeting key suppliers in a move to ensure they have a reliable pipeline of inputs for when activity starts to ramp up again.
*Respondents were asked to select all that applied.
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