The Entire Construction Industry Is So Inherently Related Issues Can Extend Rapidly
The supply chain is a finely balanced set of connections, as the majority of company owners know and damage to the chain can have a serious impact on your individual business profits. This is a concern for many different kinds of markets as they usually have very little control over the other organisations that they work with. This is particularly so in the construction sector. Of course there are hundreds, possibly even 1000’s of organisations who deliver similar services to one another but most of them will be emerged in to supply chains with other groups of businesses and most of their undertakings will be with this chain. In construction there are lots of manufacturing processes needed together with several trades, professions and fittings manufacturers. So comprising one chain you will see the architects and engineers the steel manufacturers the building team working in conjunction with producers of industrial doors, roofers, plumbers and so on and so on.
Picture then if there are issues with some of the single organisations in the group. As they all tend to some degree or other to work with the same set of businesses these issues can have a dramatic effect on what appears to be seemingly unrelated business down the line. This is particularly the case of the major contractor. If issues crop up with that company, if jobs dry up the knock on effect reverberates throughout the entire chain and can even devastate some smaller organisations who do not have other projects outside the contaminated chain.
So in this tough economic climate where a lot of public sector building plans have been put on hold or even binned, it is simple to see how the issues can cause problems for a lot of organisations. The designer is not requested to draw, the industrial door producer is therefore not chosen by his team who realise the benefits of his product; the steel frame is not engineered or manufactured and no fixtures and fittings are needed. The results can be catastrophic.
The lesson is as usual, do not put all your eggs in one basket, the threat is too big and your chances of surviving the recession reduced.
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