Trading at a loss

paul

paul

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All the gangs had a call today to get back to the Yard at 4:30pm for a company meeting , so at 4:30pm today we were all back at the yard and the meeting began with the manager and supervisor and we were told that we are not making any profit and infact we are making a big loss, which came as a surprise as all the gangs have been full on for the last couple of months .

Felt like a kick in the teeth if im honest but then we dont know what goes on in the office , also there had been a few gangs that have caused a fair bit of damage which would not help .

Whos to blame ?

The scaffolders for not doing enough or the office for there end of the the deal .
 
paul you say you have been full on so the work is there but at the tender stage your companys bid may be very low meaning he maybe buying the work,also good company admin dictates the amount of employees to employ to the ratio of work mate scaffs and office combined are yous top heavy in the office???lastly there is only so much work you can do in a day if your pulling yourselves out and still making a company loss then the problem lies at the tender stage maybe,hope yous pull through mate.
 
Paul
Don't know how big the company is but interserve Newcastle where doing work that would not even cover the wages but were getting bailed out by other parts of the company on the industrial site it was more about keeping the branch open for the better time.
That if there is better times to come!!!
Good luck mate
 
Your not alone there mate
Have just posted in the news that Felton Scaffolding have gone into administration
fear there will be a few more before this recession is over:mad:
 
Paul if the lads are busy then like Celtic says its in the office, the prices have dropped a lot but fuel and the like have gone through the roof .
 
rates and fuel is causing all the losses , lots of competition at this end at the min
 
Recession always brings this around. Construction companies are very nervous so are tightening their finances in a big way. Inevitably they hunt for the very cheapest scaffold quote available. Virtually every scaffold company at this time is desperate for work so price the jobs exceptionally low hoping to claw back a few bob in extras. The problem though is that as Celticbhoy says, companies are basically buying contracts just now and even though the scaffs are grafting, turnover is well down. Our branch was losing fortunes every month, until we unfortunately had to lay guys off. Thankfully two senior managers went first as it had become clear months beforehand that they were a major cause in our troubles. Was pretty gutting though that mates of mine lost their jobs too through no fault of their own.

The recession isn't the only problem though. Your friend and mine Mr. Scaffstep is slowing down production and adding to the hit companies are already taking.

The worrying thing for me is that scaffolding companies with unsafe methods are winning contracts because they can afford to under-price jobs further than reputable ones because they cut so many corners to speed work up which in turn keeps turnover up.
 
But dont forget the bigger the company the bigger the over heads and the more office staff on wages , which small firms dont have. How many office staff do you see on the tools when times are tough ?
 
dave b 2 said:
they all say it the big firms mate who u on for ??????????
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Interserve unfortunately

philliosmaximus said:
But dont forget the bigger the company the bigger the over heads and the more office staff on wages , which small firms dont have. How many office staff do you see on the tools when times are tough ?
Click to expand...

The number of office staff reflect the amount of work being done, or at least it did until recently. Now we have reduced numbers across the board the overheads are down, but similarly so is turnover. They are trying to combat this by using agency workers which is pretty stupid. I know it saves the company holiday pay, PPE etc. but the quality of work being dished out is pitiful and the loss of materials adds up too
 
Looks like your Branch have being buying work on the assumption "Any work is better than none" so unfortunatly it has inevitably come to a head...
We are a small company and in my view very very lean and keep our costs to a minimumn, but we are up against some huge companies when pricing/tendering and I am still frankly amazed what these business's will work for??!! I had priced a reasonable sized job in Sheffield for what I thought was a very reasonable £25k....It went for £14k to a massive regional company....Couldnt get my breath!!
 
Some large companies can undercut smaller companies like ourselves,but no matter how big they are,it can't go on indefinately.They usually have much higher overheads and feel the pinch even more.Fortunately we have a very good client base that seem to appreciate the quality of work and service we have given them in the past. Another thing a lot of companies seem to remember is that they weren't being charged way over the top during the boom times.(there are a few firms I know of that used to do this that are really struggling now).
A quick buck is not always the best way forward. I understand that some of the larger contractors will try to screw your prices right down,I say let the firms that are greediest go for that work and try to keep your head and nerve.
If you've been fair with your customers over the years they don't usually forget this.It seems to have worked for us as we had our best ever year last year,and have had a very good start to this one.
 
Nice to hear Scaffman, hope it continues for ye mate :)
 
I think a good working relationship with a client is the key, I've always said good scaffs are your best assest not only through their workmanship but also by their attitude on site, it goes a long way. I have been working constant for the last 12 year for a big multinational pharma co. At times bigger scaff firms have come in cheaper, but none lasted, they've had safety issues, behavioral issues and basically did'nt know what they were getting into, it's a strict regime, but your rewarded for complying. We have been the only approved scaffolding contractor on site for a few years now and the lads attitude and behavior plays a big part.
 
as scaffy says the fuel vat factors have to be taken into the reckoning,one other lad said theres a lot of busy fools out there.im amazed at the differential of prices tens of thousands undercut,as the lad said its got to come to a head at some point no company can keep that up.

---------- Post added at 08:35 PM ---------- Previous post was at 08:31 PM ----------

brandy you seem to reaping the rewards of a considerate employer the guys will buckle down to a good employer most tight nit firms have that set up as they say you only get out what you put in.
 
Sorry to hear your predicament Paul. If what you are saying is accurate, there is no way the company position can be attributed to the scaffs. It's easy for everyone to distance themselves from a sinking ship but the estimators and debt recovery team have a responsobility to carry out their duty with care and diligence and keep the work coming in and wages going out, it's not rocket science whatever size of firm you work for. In my limited experience, any firm who finds itself in trouble usually stems from a prolonged period of mismanagement.
 
Your right Celticbhoy it's all about respect, give respect and you'll get it back.
 
price slashing is menta;l at the moment all over the place , just trying to keep the carded lads in work is difficult enough
 
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