Wates' Paul Drechsler.
Wates boss says capital investment will promote recovery
Published: 18 October, 2010
LEATHERHEAD: Paul Drechsler, chairman and chief executive of construction group, Wates, is urging the Government to promote recovery with capital investment in construction.
Mr Drechsler is adding his voice to the Get Britain Building campaign when he quoted research by the UK Contractors Group which suggests that every pound spent on construction generates £2.84 in the wider economy – with most of it staying in the UK.
With sales of £945m last year, Wates reported profits of £38.9m – a drop of 17% on 2008. Mr Drechsler reported a £2.3bn order book at present for supermarkets to prisons.
"Delaying or cancelling public sector work is not the way to tackle the national deficit," he stated. "Identifying and implementing genuine efficiency svings would be a start.
"Cuts would mean projects being mothballed within days an the speed of job losses for the industry would be shocking."
Last month Wates announced that it was to open offices in Liverpool where projects wil include the £19.5m Mount Pleasant campus for the city's John Moores University and a £13m central teaching laboratory for the University of Liverpool.