THE four-year slump in the construction industry has seen more than
500,000 jobs lost, cut-throat competition forcing building prices down
to suicide levels, and there are forecasts that a further 110,000 will
go by the end of next year.
But such desperate circumstances have not deterred people from setting
up in the industry, which should be leading the country's investment
recovery.
Back in the Thatcherite year of 1987, bored trainee bank clerk Graeme
Kane wanted a change. House prices were soaring and building projects
springing up all over the UK. He decided to switch careers.
He started a four-year degree course at the then Glasgow Polytechnic
to obtain a BSc (Build). But before he was even halfway through his
studies, output in the construction industry had collapsed.
Nevertheless, on completing his degree in 1991, Kane was still in the
enviable position of being offered two jobs with major construction
firms -- Tarmac and Henry Boot.
He chose the latter. Just one month before starting, he was told his
services would not be required because of the recession. On calling on
Tarmac, he was informed the position was filled.
Two years on, Kane is running Beta Builders 2000, based in Old Mearns
Road, Mearnskirk, Newton Mearns, its Greek name a tribute to ancient
master craftsmen.
Founded in March, it is now tendering for contracts up to #100,000,
mostly house extensions or refurbishments and office alterations.
After his jobs blow in 1991, Kane filled in time while writing to
about 50 construction firms by working for a friend, Peter Dalglish, of
wholesale plant suppliers Blue Acre Nursery in Newton Mearns.
His applications were rejected, usually on grounds of ''hard times'',
despite his degree grounding in subjects ranging from maths and
chemistry to practical building, embracing construction techniques,
materials, and pricing.
Dalglish finally asked him to oversee an extension to his
two-bedroomed bungalow. The work included adding five bedrooms, a sun
lounge, games room, double garage, and stables.
Dalglish was so impressed by his handling of the project that he
offered to finance a new construction company, with Kane, now 25,
managing contracts from start to finish.
Kane says: ''We were well aware of the state of the building industry,
and that the possibility of work was limited. Despite the industry's
pessimism, and with few signs of a pick-up, I jumped at the chance --
because the work is still out there to be won.
''It was a risk, but one worth taking. Business exists, even if it is
harder to find than in the boom years of the mid-eighties when profit
margins were much higher.
''Competition is fierce -- a lot of big companies are taking contracts
at cost price, just to keep ticking over, and I have been surprised at
the number of medium-sized firms now tendering for even the smallest
jobs. Everyone -- and that includes the 'cowboys' -- is fighting to stay
in business.''
He believes preparation and patience, coupled with an experienced,
reliable workforce, will prove the keys to success.
''It is a recipe for disaster to take on too much work, no matter the
desire. I cannot be in more than one place at a time as project manager,
so groundwork is important.
''A lot of time is spent preparing for any problems that could arise
before going on site, especially with regard to prices of materials and
their supply.''
Kane is confident expansion will follow naturally, based on the firm's
reputation and close liaison with clients and their architects.
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