Laing O’Rourke is seeking to reduce 60 jobs at its offsite manufacturing unit in a bid to scale back working prices.
The contractor, whose latest financial results noticed it plunge to a £288.1m loss on £3.3bn of turnover, blamed delays to initiatives for the newest spherical of redundancies.
A spokesperson for its Discover Manufacturing subsidiary mentioned: “On account of difficult market situations, we have now seen delays to among the initiatives [the Centre of Excellence for Modern Construction] was set to service. Subsequently, we have to scale back our working prices, whereas persevering with to ship initiatives and shield our means to put money into the expertise and improvements that may rework building.
“We all know that any proposal to scale back roles creates a tough time – we are going to work with our folks and proceed to assist them via this course of.”
The newest redundancy spherical follows a cut of 200 jobs from throughout the contractor final summer time, a transfer that was additionally blamed on challenge delays.
Laing O’Rourke has invested hundreds of thousands in its Centre of Excellence for Trendy Development offsite manufacturing hub, based mostly in Steetley, Nottinghamshire, because it opened in 2010 as a part of chief government Ray O’Rourke’s imaginative and prescient to remodel the enterprise “from trades to technicians”.
In 2017, he told Construction News that making manufacturing “enticing within the market” was key to potential plans to drift the corporate on the inventory trade.
The agency later took out full-page adverts in The Sunday Occasions selling its design for manufacturing and meeting (DfMA) method.
In December 2020, chief monetary officer Rowan Baker informed CN that the agency’s DfMA nouse gave it an edge with the federal government and that O’Rourke was supplying different tier one contractors from its offsite facility in Steetley.
However, in November 2023 group technical director Andrew Wolstenholme informed the Home of Lords Constructed Surroundings Committee that the “low-cost, competitive-tender system” at present utilized by the general public sector was not match for selling fashionable strategies of building (MMC).
He mentioned: “I do assume that authorities departments have to know that if you wish to procure for worth… you may’t proceed to place danger burdens onto the provision chain, such that the improvements should not going to create the chance.”
Accounts for Discover Manufacturing present it turned over £65.7m within the 12 months to 31 March 2022, and made a £831,000 pre-tax revenue.
It was subsequently mixed with Laing’s MEP manufacturing arm Crown Home Applied sciences, and the enlarged enterprise posted income of £97m and a £2.6m pre-tax revenue within the 12 months ending 31 March 2023.
A number of offsite specialists have collapsed lately together with Ilke Homes, House by Urban Splash, Mid Group, Eco Modular Buildings and Caledonian Modular. L&G additionally wound down its offsite business after years of heavy losses.
The Lords’ Constructed Surroundings Committee inquiry into MMC just lately concluded the federal government lacked a clear strategy for investing in such companies and projects.