October 28, 2008
REINFORCEMENT SECTOR EYES THE FUTURE
BAR105
11th May 2009
REINFORCEMENT SECTOR EYES THE FUTURE
Despite the depth and ferocity of the recession there are signs that the worse may be over and investment in new products and processes together with a major rationalisation means that the reinforcement sector is well placed to take full advantage of the recovery.
Speaking at the recent annual industry lunch of the British Association of Reinforcement (BAR), Graham Mackenzie, BAR Chairman, said that in the first quarter of this year construction orders were down by 32 per cent and output down by almost 50 per cent compared with 2008. He questioned the Chancellor’s optimistic growth forecasts and, although welcoming the Government’s initiatives to stimulate the construction sector, found it difficult to see how the rhetoric is being converted to serious programmes for delivery.
He said: “I have real concerns that many initiatives such as the ‘Schools for the Future’ programme will get bogged down in red tape or prove to be completely unfundable. Constraints on government spending, about which the present administration seems to be in denial, mean there have also to be concerns about major infrastructure projects such as Crossrail. The easiest thing for a government to do is to cut capital expenditure. The construction sector must be on it guard to ensure that these important projects go ahead”.
However, Mackenzie was optimistic that there are some signs that the rate of decline in orders is starting to slow and that price decreases may have bottomed out. He believes that due to ongoing investment and industry rationalisation, the reinforcement sector is well placed for the upturn.
“The sector has invested in new product development and although it has had to shed some labour, it has done it in a way that has preserved skills and capability with the industry”, he said. “The downturn has triggered a major rationalisation within our sector. This is, in fact, a positive move as it means that all the major players in the sector are in the ownership of companies or families with long-term intentions and plans for the future”.
He concluded: “The forecasts for the immediate future are not bright but things may have bottomed out. The reinforcement sector has demonstrated that it can react flexibly to the new challenges and I am sure that BAR member companies will continue to invest, innovate and work with other parts of the supply chain to deliver world class reinforcement.”
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