Warning issued as two construction firms collapse

Jersey Business Leaders Warn of Economic Shock as Two Construction Firms Close

Business leaders in Jersey have raised alarm over “shockwaves across the economy” after two local construction companies announced their closure.

The Jersey Chamber of Commerce (JCC) described the news as “devastating” for affected staff and their families after Style Group ceased trading and Amplus Limited confirmed on Monday it was shutting down.

Amplus, which had been operating since 1999, did not provide a reason for its closure but posted a farewell message online, saying it was time to “hang up our hard hats and close the doors.” The cause of Style Group’s collapse is not yet known.

The JCC warned the island risks losing capacity to deliver vital housing, schools, and infrastructure projects if further firms go under.

Call for Investment

JCC chief executive Murray Norton said the government must act quickly, stressing that it is the island’s largest client for construction work.

“Without headline projects that local construction companies can bid for, we are concerned that further closures will be inevitable and skilled tradespeople will be lost to Jersey’s economy,” he said.

He added there was “a clear need for a broad range of investment” across housing, infrastructure, and maintenance, urging: “We must make it happen.”

In a statement, the Chamber warned the closures would impact not just employees but also suppliers and subcontractors facing unpaid bills or cancelled projects. Costs could also rise as the island becomes more reliant on off-island contractors, it said.

Growing List of Failures

The latest closures add to a string of recent losses in the industry, including Mitchell Building Contractors in October 2024, Kalmac and associated firms in July 2024, and Camerons Ltd and JP Mauger in 2023.

Mike Osborne, chair of the JCC’s Building, Housing and Environment Committee, said “tangible action” was needed to prevent further collapses.

“Government is the biggest client and influencer of activity in the sector, but it needs to understand the multiplier effect construction has on the broader economy,” he said. “We need a procurement process that is rapid, reduces bureaucracy and supports local business.”

Government Response

Deputy Kirsten Morel, the minister responsible for the sector, acknowledged the government could do more to support construction and said he would push colleagues to accelerate projects, particularly in health, education, and infrastructure.