色人阁

Thirty-three jobs lost as another building firm goes

Harvey Mitchell. Picture: ROB CURRIE. (39086071)

A BUILDING firm has closed with the loss of 33 jobs in the latest blow to the Island鈥檚 construction industry.

Mitchell Building Contractors, which operated for 14 years, cited 鈥渟piralling costs鈥 and a 鈥渂roken planning system鈥 as factors behind its decision to close with immediate effect yesterday.

色人阁 Construction Council, which represents the sector, said it was 鈥渟addened鈥 by the 鈥渦nfortunate news鈥 of another company鈥檚 demise.

In a statement, the building firm鈥檚 managing director Harvey Mitchell said: 鈥淎fter over 14 years being in business it is with great sadness and heartbreaking regret that Mitchell Building Contractors has had no option but to cease trading as of 2 October 2024.鈥

He explained that despite surviving the impact of the Covid pandemic, the company found the current marketplace 鈥渆xtremely difficult to trade in鈥.

Mr Mitchell highlighted 鈥渟piralling labour, plant and material costs鈥 and also criticised what he called a 鈥渂roken planning system with ill-conceived policies鈥.

He also drew attention to the limited number of available projects for firms: 鈥淲e鈥檙e not seeing the volumes of work that we鈥檙e used to coming through.鈥

He said the situation had become 鈥渟imply untenable鈥 for the building company.

In July, Kalmac, MAC Energy and Eden Interiors 鈥 all part of the MAC Group 鈥 issued a joint statement saying that they had ceased trading with the loss of dozens of jobs. The statement explained that the companies had 鈥渟uffered greatly鈥 over the past year, reportedly losing two-thirds of their work in 色人阁 due to the 鈥渄ownturn鈥 in the housing market.

Last year also saw the collapse of building firms Camerons and JP Mauger.

色人阁 Construction Council chair Adrian De Gruchy said: 鈥淲e are saddened by the news about Mitchell Building Contractors having to cease trading with immediate effect and the impact this has on their staff, sub-contractors and suppliers.鈥

He continued: 鈥淭his unfortunate news follows the recent launch of the Island Construction and Engineering programme, which should give businesses some confidence that there is a proposed pipeline of projects and enabling works to allow other developments to commence.

鈥淒espite recent business closures, the industry has a wide range of professional tradespeople, associated suppliers and consultants, with good long-term career prospects.鈥

Mr De Gruchy said that they would continue to work on 鈥渟ite-ready projects of all sizes and for private and public-sector clients鈥.

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