JERSEY’S struggling construction industry could see “green shoots” soon, with several major infrastructure projects due to start, according to the Chamber of Commerce.
Chamber vice-president Lee Madden made the comments following the recent closure of K-Land Construction, a company founded in 2011 which carried out refurbishments, renovations and extensions at residential and commercial properties across the Island, including at the Biarritz Hotel in St Brelade.
Mr Madden said news of the closure was “awful”, particularly considering the time of year, and that the construction industry was “in the region of 30% down” from two years ago.
The past few years had been “difficult” for the industry, he explained.
K-Land’s closure came less than a year after Kalmac, MAC Energy and Eden Interiors – all part of the MAC Group – ceased trading.
In autumn, Mitchell Building Contractors closed, leading to the loss of more than 30 jobs. Building firms Camerons and JP Mauger both also collapsed in 2023.
But Mr Madden stressed that the Chamber of Commerce remained positive about the industry’s future.
He said that there are some “green shoots” out there that point towards improvements this year.
Major infrastructure projects scheduled to start in 2025 would help, added Mr Madden, noting that “the sign of a booming economy is when there are cranes on the horizon”.
He said: “We need to get through the next few months and we hope that the government will realise some infrastructure projects in Q2 and Q3.
“We have got an amazing sector. There are good long-term prospects there.”
The tender process for the new hospital launched in October, with potential suppliers asked to express their interest in taking on the project.
Meanwhile, a redevelopment of South Hill was approved last year, with 130 flats now in the pipeline to be built on the former site of the Planning Department’s offices.
And a major redevelopment of the Harbour was given the green light and is due to transform the site.
However, Mr Madden explained that there was no company based in Jersey that could take on the hospital project on its own.
Instead, collaboration between local and UK or European firms could be the way forward, he said.
The construction industry has been hit not only by inflation, but by the high cost of materials, difficulty in getting qualified staff – particularly when they have to be brought to the Island – as well as the minimum wage for apprentices being put on a par with the minimum wage for fully fledged employees.
Mr Madden stressed that paying apprentices the living wage was “the right thing to do”, but that it was still a contributing factor to the industry’s difficulties.
