ADCAS warns of danger of driving down subcontractors’ prices

Published:  09 September, 2009

Moss
Profitability warning — Malcolm Moss

ADCAS* has issues a strong warning of the danger in the trend to attempt to force subcontractors to cut prices to the bone. The association, which represents all sizes of ductwork manufacturers and contractors, believes that any attempt to use the recession as a means to cut costs will have serious consequences.

‘Work is in short supply, but unrealistic pricing will only make things worse,’ says ADCAS president Malcolm Moss.

‘Our members need to make a profit like everyone else in the procurement chain. If not, we’ll be seeing more companies closing and more jobs lost.

‘Main contractors seen to be sacrosanct — I suspect because of their tightly drawn contracts and effective legal departments. The smaller company is most at risk of what is tantamount to bullying.’

In a new trade survey by ADCAS and the HVCA’s ductwork group, 65% of respondents reported a falling order book. While 85% of those taking part in the survey regarded lack of orders as the main problem facing the industry, 63% were concerned by lack of profitability.’ *The Association of Ductwork Contractors & Allied Services



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