The Construction World is Changing
10 August 2018
Whilst writing this article, it has been confirmed Mike Ashley, owner of Sports Direct, has purchased House of Fraser.
A few weeks ago, PAL Hire stated shopfitting is the new trend within the construction industry. Today, iconic firm House of Fraser has announced it will appoint administrators as talks with investors did not go as expected. This announcement provides further evidence the construction industry is in the middle of a seismic shift. A few days ago, Homebase revealed plans to close 60 stores. Both announcements put thousands and thousands of jobs at risk throughout the UK. This is devastating news for an economy that has grown by 0.4% between April ’18 and June ’18.
Changing Face of the Retail Sector
The changing face of the UK retail sector has seen the downfall of iconic brands, in addition to the rise of the online world and further uncertainty over Brexit. It may not be accepted by some commentators, but the truth of the matter is several industries, security, aviation, and retail have all expressed concerns if the UK leaves the EU with no deal in place. A hard Brexit is not the way forward; however, at this moment in time, this seems to be the likeliest scenario.
If you are of the opinion Brexit will not affect the construction industry, then I refer you to the RICS website.
RICS states the UK construction industry could lose 8% of it’s workforce, circa 200,000 workers, post-Brexit, which could jeopardise numerous high-value projects, with a combined total of £500bn.
The changing face of the retail sector has coincided with the increase in the number of redevelopment projects. With stores closing, councils have had to find new ways of engaging the public to visit high streets and recreational areas. The growing trend is for trampoline parks to take the place of businesses in retail locations.
Councils have had to improvise and the need to entice the public out of their homes and into areas where shops are close by starts with enticing their children. The jump parks and child-friendly areas could be start of a new wave of retail parks, one that caters to both adults and children.
Even if this isn’t a new trend, the change requires plant and equipment, such as site security, waste disposal equipment, site storage facilities; everything PAL Hire provides whilst refurbishment projects are ongoing.
At PAL Hire, we prefer to stay ahead of the curve and have intellectual discussions in our break room. We recently spoke about who’s next. Several names were thrown around, and one person mentioned Dixons. At first, I thought they were speaking nonsense. Dixons, a reputable organisation, owner of Carphone Warehouse and Currys. This is a blog where we do our research and at PAL Hire we take everyone’s opinion into account before publishing any information.
At the end of May, Dixons reported it will close 92 Carphone Warehouse stores due to a 60% fall in profits. Is this the beginning of the end for Dixons? With more and more people tending to upgrade phones directly with phone retailers such as EE and o2, the industry is changing, and it is very likely Dixons will suffer because of this change.
What Has PAL Hire Said?
As mentioned in an earlier post, there are three major reasons as to why the landscape is changing:
- Change in Business Models
- Change in Consumerism
- Change in Rates
All three reasons are a direct cause as to why construction projects and the construction industry is changing. All three reasons are why organisations are swaying towards hiring plant and equipment as opposed to buying it outright. The economic climate is changing.
Directors and shareholders have decided they prefer to hire plant due to the reduction in new build projects. The fewer projects currently available in the UK, the lower the need to purchase plant that may only be used for a few weeks a year.
What PAL Hire Can Do?
Contractors across the UK are turning to PAL Hire to supply everything they need to run a safe, efficient, and cost-effective site.
We can provide products and services to anyone, anywhere in the UK, and at any time. Given our nationwide capabilities and local depots, we can solve any problem you have.
Commons problems we solve include:
- Working at height
- Working at night
- Handling specialist waste
- Servicing plant and equipment
It should no longer come as a surprise the UK construction industry is in the middle of a transformation; a revolution as such. PAL Hire is on the right side of history. You should be too.
If you’ve recently secured a shopfitting or refurbishment project and are thinking whether you should purchase or hire plant, give our sales team a call on 0844 288 7265 or leave an enquiry on our website and they will help you see why hiring plant is best for business.