Enhanced margins through operational efficiency

Driving performance improvements at the pace demanded by investors can be difficult endeavour, particularly if the workforce and supplier base which are large and dispersed across many locations.

But in a tightening market, house-builders and contractors need to address the issues of cost reduction, working capital minimisation and service improvement.

Squeezing suppliers is an easy fix and will bring short-term gains. But longer term solutions need to be found to protect their margins and provide differentiation in a tough market. The supply chain supporting the construction sector remains fragmented and does not receive the senior management attention evident in other sectors.

Consequently, there are opportunities to:

• access new lower-cost sources of supply;
• take more direct control of procurement and change relationships with sub-contractors; 
• deliver unit-ready loads to sites on a just-in-time basis.