25-04-2008
Mergers expected in north-east construction
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An increasing number of construction firms based in the north-east will merge their operations, according to one expert.
Tom Bill, business editor at Building magazine, believes consolidation is one way in which smaller businesses are able to cope with the effects of the economic downturn and competition from national firms.
He told the Journal that the first quarter of next year will be a crucial period in discovering which companies have managed to ride the storm.
"We are expecting an increase in merger activity for the rest of the year as firms become increasingly worried about their futures," he continued.
The newspaper reports that recent merger activity in the region has included the buyouts of Graydon Dawson and David Wilkinson by Owen Pugh and the Esh Group respectively.
Meanwhile, a report published this week by the Federation of Master Builders claimed that builders in Northern Ireland have been the hardest hit by the current slowdown.