Construction is one of the largest sectors in the UK and contributes significantly to the UK economy. In 2017 it generated £113 billion and employed 10% of the UK workforce.
The sector is not, however, without its challenges, including skilled workforce shortages, low-profit margins and low uptake of innovation and digital solutions.
Although diversification into other sectors and industries poses certain risks and challenges, it has helped construction giants and conglomerates come back to business following challenging times. Balfour Beatty - the UK’s biggest building company – diversified into water treatment and project management which has helped lift the company amid poor demand in its native market.
Likewise, adopting a diversification strategy in the construction sector has helped alien companies make a much-needed comeback into business. Fresh of the press is the news about IKEA branching out into building houses in the UK. Whilst the Swedish furniture giant is not giving up on its bread and butter, it is going one step further toward expansion and new market exploration – the two main features of diversification.
Diversification is often seen as the next logical step after building a successful business or the last step of finding purpose. In both cases, it adds to business acumen and cements an organisation’s position in the marketplace, so that in hard times there are more opportunities for work.
North East businesses have the opportunity to benefit from trusted business advisers to guide them through their diversification journey.
Supply Chain North East brings together four key partners to work with over 800 businesses through to 2021, supporting them to identify opportunities in new and existing markets. An integral part of the North East Growth Hub, Supply Chain North East is delivered across the region by RTC North, Generator, North East Automotive Alliance (NEAA) and North East Process Industry Cluster (NEPIC). The programme helps companies tap into new markets, explore new opportunities, and ultimately futureproof their bread and butter should challenging times arrive.
If you are looking to explore opportunities to branch out in the construction sector, come along to our free event to hear from leading experts about how Supply Chain North East can help you grow or diversify your business. You can book your place by visiting the Eventbrite page.