Osborne boss woos Balfour staff facing the axe

Grant Prior 10 years ago
Share

Osborne chief executive David Fison has questioned the latest round of industry mergers and believes smaller contractors will benefit.

Fison – who was previously chief executive at Skanska and managing director at Balfour Beatty Civils -spoke out as the Carillion/Balfour saga rumbles on.

And Fison is hoping to attract new staff to Osborne during the fallout if the merger goes ahead.

Fison said: “I am watching the merger moves of the large contractors and consultants with great interest.

“It is what big companies do to gain market share and maximise earnings by cutting costs through combining teams, offices, etc.

“What that means of course is laying people off, often the most experienced and therefore most expensive– usually described in press releases as ‘creating synergies’.

“But this is happening at a time when the construction industry is becoming increasingly aware that it faces major issues over resources, by which I mean people as well as materials and plant.”

Fison highlighted reports that show 300,000 people left construction during the recession and another 300,000 are due to retire shortly.

He said: “Replacing them will not be easy or quick.

“As investment in infrastructure and construction generally ramps us having enough good quality, trained people is going to be the deciding factor in what work firms have the capacity to bid for and deliver.

“The anticipated synergies in those big mergers may not evolve as companies find they need to hang on to resources.

“But if they do, big company efficiency savings look like being to the benefit of smaller companies.

“Most small businesses have a longer horizon, less ambitious profit ambitions and can offer secure job opportunities for construction staff.

“The jobs may not be so big but we are closer to our customers, more agile, and value what individuals have to offer.

“For staff, and in fact for clients, it’s a bit like choosing a restaurant.

“You can go to a top class hotel with formal service or the local restaurant round the corner.

“Both give you good food to suit your budget but with a different style. It’s just about making the choice. Smaller businesses have a lot to offer, I believe.

“We are looking forward to welcoming new recruits going forward.”

Latest news

Winners of £3bn London housing major works deal

Graham, Kier, McLaren, Morgan Sindall, Vinci and Wates win places
1 hour ago

BBC brickies firm went down owing £2m to suppliers

Hodgkinson Builders sold for £95,300 in pre-pack deal
1 hour ago

Network Rail reveals top suppliers spend

BAM leads as biggest civils rail contractor
1 hour ago

Go-ahead for £125m Immingham Ro-Ro terminal

Dragados is lined up to deliver the terminal which includes three new berths
33 mins ago

Renew buys onshore wind firm for £50m

Full Circle deal adds 160 specialist technicians to workforce
27 mins ago

New construction boss for Robertson North East

Neil Kennedy promoted to MD of Gateshead-based regional operation
3 hours ago

Civils work fuels fastest output rise in two-and-a half years

Construction buyers see September surge
2 days ago

Barratt £2.5bn takeover of Redrow clears final hurdle

House building giants merger plan gets go-ahead after competition probe
2 days ago

Renew sells Walter Lilly building arm

100-year-old building business sold to luxury contractor Size
3 days ago

Work to start on Teesside and Merseyside carbon capture schemes

Government commits £22bn funding to world's first industrial-scale carbon capture projects
3 days ago

Flagship £200m London Premier Inn scheme approved

700-bed hotel to be built on the Strand near Trafalgar Square
3 days ago

Kilnbridge appoints new construction director

Former McGee director Darren Wickins joins concrete frame specialist
3 days ago

HS2 trial to replace cement with baked clay

Extra funding for programme to replace cement in concrete with calcined clay
3 days ago

Subcontractors wanted across the South West

Register now for latest Constructionline event in Bristol
3 days ago

Galliford Try profits and revenue surge

Release of delayed building jobs and surging water spend boosts firm
4 days ago

Octavius Infrastructure national expansion push pays off

Revenue leaps 28% to £277m with order book at over £1bn
4 days ago

Skanska staff get access to digital doctors

Contractor launches benefit for staff and their families
4 days ago

Another new name for former Kier Living housing arm

Tilia Homes and Hopkins Homes now known as untypical
4 days ago

Danny Sullivan Group buys M&E recruitment firm

Acquisition boosts presence in infrastructure sector
4 days ago

Sisk in talks to finish ISG’s £200m Teesside vaccine plant

First big job to restart since crash of ISG nearly two weeks ago
5 days ago

Wates snaps up 1,100-staff social housing upgrade contractor

Liberty deal spearheads push into heating and compliance market
6 days ago

Go-ahead for Liverpool film studios and museum jobs

£60m Littlewoods film studio and £58m museum revamp approved
5 days ago

London RC frame specialist goes under

Bela Structures had a 100-strong workforce at peak
4 days ago

VolkerWessels lifted by marine arm’s return to profit

Group operating margin slips to 2.5% in challenging year
5 days ago

United Living appoints Director of Water

Scott Beard joins from Welsh Water where he was head of engineering
5 days ago

HE Simm eyes return to profit after £10m loss

£4m family cash injection helps engineering division rebound
6 days ago

Dragados lands Elephant & Castle tunnel deal

Work to start next year on excavating 135m of new passenger tunnels
5 days ago

Caddick bolsters Midlands construction team

John Currie and Ian Calder to oversee operations in region
6 days ago

Angry staff call for investigation into collapse of ISG

Former staff say business began to unwind two years ago amid management failures
6 days ago

Direct labour model lifts Clancy to record revenue

Pre-tax profit jumps 55% to £21m from £379m revenue
6 days ago

Contractor services