Phil Pluck, Glass and Glazing Federation (GGF) Group Chief Executive raises his concerns after the collapse of Carillion. He mentions that this tragedy raises fundamental issues in terms of protecting the smaller companies caught up in the collapsing supply chain, as well as the jobs that may be lost as a result.

Delivering major build projects on the decreasing Government funding creates a race between companies in a sense that the major contracts are awarded to those that offer the lowest price. He calls this a “poor, short term approach which causes companies throughout the supply chain to operate at almost impossible margins”. The fixation with cost savings has built a clear risk for major construction projects.

Talking for the GGF members, Phil adds: “A cost cutting approach to the awarding of contracts puts at risk build quality, safety and jobs. In doing so, no legal protection is afforded to those in the supply chain that are now the victims of the Carillion Collapse. This in turn could result in further company failures and consequent losses of jobs and talent.”

Government’s rescue packages offered to a few selected companies do not reassure GGF Member companies of anything and they won’t allow them to plan a long term sustainability based only on the packages. “A lasting negative effect on Government tax revenue would be the result,” said Phil.

Phil Pluck advises the Government to give up on this tactic because it will cause further damage to the industry and to other companies. “I urge the Government to assess the long term damage that short term cost savings creates and to take heed that Carillion may not be the last company to collapse as a result. There are other major supply chains also operating at near impossible margins.”