ONE of Jersey’s biggest industries – representing a tenth of the workforce – is to be reviewed by the Island’s competition watchdog.
The Jersey Competition Regulatory Authority has announced that it will start work on a review of the construction sector in September, with a view to completing it in 2025.
Construction represents nearly 8% of Jersey’s economy and over 10% of the Island’s workforce.
Excluding the public sector, education and health services, it is Jersey’s third-largest industry, beaten only by finance and the Island’s wholesale and retail market.
In a statement outlining the approach to the review, the JCRA said it would “explore the structure and features of the sector, with a view to understanding whether there are any competition issues for the authority to consider”.
This, it explained, would include analysis of several factors – including recent and future demand, market structure and the nature of competition “across the construction supply chain”, as well as costs and consumer and business experiences.
The review’s launch comes less than a year since the main industry body, the Jersey Construction Council, called for “accelerated” government support and investment in the sector.
In 2023, two major firms – Camerons and JP Mauger – collapsed, sparking fears of a negative ripple effect on the economy.
And last month, Kalmac, MAC Energy and Eden Interiors – all part of the MAC Group – announced they had ceased trading amid a “downturn” in the housing market.
The news prompted JCC chair Adrian De Gruchy to highlight the industry’s need for “site-ready projects”, with a rallying cry to “get Jersey building again”.
JCRA chief executive Tim Ringsdore said the review was being launched in the context of both “significant upcoming construction projects” and “recent changes in the market structure”.
He added: “Given the significance of construction to the economy it is important we know whether there are any competition issues to consider, and whether the market is working in the interests of Jersey’s consumers.”
Mr Ringsdore continued: “There will be an opportunity for consumers and businesses to provide feedback on our work during the coming months. The output from the review will inform our further work in this area, which is likely to take the form of separate follow-up projects such as targeted market studies, or advocacy work.
“These will help ensure the sector continues to work in the best interests of consumers and the Island economy.”
