Still turning a profit: Andrew and Gareth Russell of Russells Construction
Manchester> Construction
▼A focus on refurbishment over new
build and the resilience of the hotel sector helped underpin the
mid-size construction market in 2009.
Andrew Russell, managing director of Trafford-based Russells Construction, sums up the mood at the end of 2009. He said: "This has been a tough year in the commercial property market as there has been very little new development and almost no speculative development. Despite this, we have turned a profit and have been commencing new projects, signing land deals, securing design-and-build contracts and delivering work which had been booked in prior to the downturn.
"Our focus this year has been on expansion into new sectors and working with end users, rather than developers, as there has been a trend towards refurbishing existing premises and improving buildings for let which makes up a good proportion of our recent contract wins.
"The hotel and leisure industries seem to have been more robust than others and we have had success in winning work here with a £9m contract for Holiday Inn Express in Manchester underway and negotiations with other hoteliers looking to come into the area are ongoing.
"Next year may still be a tough one but we hope to build on the success of 2009 in expanding our work in the hotel, retail leisure sector and continuing to work with end users. Currently we are in discussions with one firm to relocate one of their regional hubs through a land, design-and-build contract and with a major retailer about a construction scheme for the North West.
"We build great relationships with our clients and often see them coming back to us time and again. Continuing in that vein will be key to our future success.
"There has been such a lack of development in commercial property over the last year it would follow that, once the economy starts to improve, there will be a requirement for new, good quality premises. Having been able to retain our skilled workforce over the last year, and be in profit at the year's end, I believe Russells Construction is in a great position to react to this demand once the market starts moving again."
