Coronavirus Supply Chain Update – The importance of commitment 29.3.20

Comment from our Managing Director, Steve Tyree.

“Given the current circumstances, it would be very easy and quite normal to pull back and hesitate from placing orders right now. This very natural hesitation could give rise to prolonging of supply chain issues and a slower than ideal recovery. Perhaps at worst it could deliver a self-fulfilling prophecy.

Hesitation is natural, already many are thinking; “Will we have rental income?” “Will contractors be permitted access?” “Will materials be available?”.

In turn contractors are having to make tough decisions as to whether they should lay-off or furlough staff. Such decisions are more easily made when there is little or no demand for their services. Contractor supply chains will also respond to the reduced demand of their customer contractors.

None of us wish to contribute to the spread or continuance of the virus and we would encourage all customers and contractors to take head of the Government’s advice in this regard. We do however recommend having an eye on the consequences of our actions. Without commitment all supply chains will close down, lay off or furlough those very people we will need as soon as the virus problem has reduced sufficiently.

The decision to furlough in preference to redundancy is a simple one, it rests on the promises of the future. Orders are a necessity to this.

It is essential that as much certainty as possible is maintained for our supply chains. Placing orders now for works to be completed later this year will help secure employment, enable contractors to obtain furlough allowances and ensure our vibrant supply chain rides the storm and returns in full force. This approach will put money in the pockets of those furloughed, reducing the risk of lost income for HAs and stock holding Local Authorities.

Should anyone wish to discuss this approach – my door is very much open.”

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