Multiple Pressures Impacting Building Industry

Construction Firms Warn of Mounting Pressures on Jersey Industry

Jersey’s construction sector is facing growing challenges, industry figures have warned, with high costs, stalled projects and rising interest rates putting pressure on businesses.

The Jersey Construction Council and Chamber of Commerce said a combination of expensive raw materials, fewer government capital projects and a cooling housing market have all hit the trade.

Ben Cairney of Ashbe Construction said while the industry was struggling, he remained optimistic about growth “in the next 12 to 18 months.” He stressed that better communication from government on the timing of major projects would help firms plan staffing and resources more effectively.

“The industry can’t rely solely on government work,” he said. “But when projects are announced, we need clarity on dates so we can prepare properly.” He also criticised measures such as the 3% stamp duty on buy-to-let properties, which he argued discouraged developers.

The difficulties are already being felt across the sector: nine firms have collapsed in the last three years, leaving staff unemployed and subcontractors unpaid.

Alex Wareham of AA Scaffolding Solutions said his company alone had lost around £300,000 in the past 18 months due to unpaid debts when firms went under. He pointed to rising interest rates, higher wages and shrinking margins as further pressures, while also calling for more storage space on the island to allow builders to bulk-buy materials and offset freight costs.

He added that Jersey’s planning system needed to become more efficient to support future growth.

The Government of Jersey has been asked to respond.