SGW shrugs off downturn
to achieve five-fold growth
SGW shrugs off downturn
to achieve five-fold growth
01 September 2011
Middlesbrough-based SGW Construction Group has defied one of the industry’s most difficult periods in recent history to expand both in size and the range of services it offers.
In January, the Office of National Statistics reported a 3.3% slump in construction activity in the final quarter of 2010 – but, largely during the same period, SGW has gone from a being a relatively small family-owned business, with a £7m turnover and 30 staff, to a group of integrated construction-led businesses employing 150 people and with projected turnover in 2011 of between £30m and £40m.
“SGW is now a group offering expertise in just about every aspect of construction and civil engineering, including areas where we previously relied heavily on sub-contractors,” says managing director Chris Lakey. “We have been bold with our investment, but we are already seeing a payoff – our order book for 2011 looks very healthy.”
SGW has acquired five complementary businesses in quick succession, most recently near neighbours Crinson Liddle, a small but long-established and respected construction company which was hours away from closing its doors and laying off all nine staff, until SGW stepped in.
Since October last year, SGW has also acquired CCS Waste Management and ETS (Engineering Test Services), both based in Hartlepool, as well as new groundwork and painting and decorating divisions.
Established in 1980, SGW is active throughout the North East and Yorkshire areas carrying out works in the public and private sectors ranging in value from £1,000 to £4m. It has a particularly strong record of major school construction and refurbishment projects.
Mr Lakey, who was construction director of SGW Construction before the expansion began, says: “The recent woes of the construction industry are well documented, but we foresee that there is definitely a good future in the industry. The reduction of Building Schools for the Future (BSF) was a massive blow, but without BSF, many schools have to improve what they have, so, while major projects may be few and far between, the work is still out there.”
Established 27 years ago, Crinson Liddle, while typically handling smaller value contracts than SGW, maintained a good reputation in the industry, but was hours away from being squeezed out of the market by competitors prepared to buy-in work.
Stewart Crinson, whose father Bob founded the business with Albert Liddle 27 years ago, says: “We sat down with staff, spelt out the facts and told them we had no choice but to place their jobs under consultation. Word travels fast in this industry and, three hours later, SGW were on the phone and a deal to save the business and retain staff - not to mention the Crinson Liddle name that has been respected brand in construction for 30 years - was on the table. It was a no-brainer.”
Mr Crinson is now SGW Group’s senior estimator, while fellow Crinson Liddle director Tony Liddle has also joined SGW as contracts manager.
Mr Lakey says: “The acquisitions have made SGW a bigger, stronger and more capable construction company. With less reliance on sub-contractors, we gain more control, we can achieve greater consistency of quality and health and safety, and we are more competitive because, put simply, the fewer the sub-contractors the fewer the mark-ups.
“The acquisitions have enabled us to pick up a number of contracts which, in the past, we may not have been considered for. They have also brought into the business individuals with different skills, knowledge and experience, and, thanks to Crinson Liddle, we now have an in-house joinery shop.”
And he adds: “The next step is to bring further expertise into the group through acquisitions.. We will still have to rely on sub-contractors for some of the more specialized aspects of a project and plan to develop and grow certain relationships, but our aim is to be able to sit down with clients and offer them, at first hand, expert information, opinion and advice in all aspects of a construction project. This is something I hope SGW will become synonymous with.”
SGW Construction Group Ltd has four divisions – SGW Drainage, SGW Groundworks, SGW ETS (Non-destructive Testing and Inspection) and SGW Painting and Decorating – while Crinson Liddle Construction and CCS Waste Management retain their original names but operate as part of the group.
Picture shows: Chris Lakey, right, managing director of SGW Construction Group, with senior estimator Stewart Crinson, formerly of Crinson Liddle