Partner Article

Constructing a brighter future

Andrew Mernin finds out how government policy is affecting one of the North East’s oldest architectural business.

Faced with relentless public spending cuts and the impact of political uncertainty, the region’s largest independent firm of architects has set out a plan to change.

Almost three quarters (70%) of the business that sweeps through the doors of Newcastle’s _space group comes from the public sector.

Schools, hospitals and NHS projects have become the life-blood of the company which now employs 150 people and has offices in Leeds and Manchester, with plans to open more in the South East and the Midlands.

However, with a general election looming and the public purse as tight as ever, the company faces a critical period in its history.

Without diversifying into new markets, the bulk of its future contracts could be at the mercy of the pubic vote, which will take place later this year. Which ever party wins the election is likely to make major public spending cuts, while a leadership change could jeopardise future projects.

“At the moment there’s still a lot of public sector work for us to get at but that’s about to change,” says chief executive Rob Charlton.

“The challenge going forward is what will happen with the government - that is the real risk. We all know that the public sector is going to slow down [while] the recovery in the private sector will be tentative.

“As we go to election time, we are looking at diversification and continue to invest in RnD. That includes new IT infrastructure, technology such as 3D modeling.”

The company, which has a history dating back over 50 years, has already expanded into construction and is now looking to diversify into contracts for the cleaning and maintenance of buildings.

Mr Charlton said: “We started out as a conventional business but we are looking at helping clients reduce their capital and are trying to think completely differently. We are investing more and more and looking to add value to the firm.

“The plan is to be a national organisation with true national coverage. We need something in the South East and something in the Midlands. That’s the plan.”

It remains to be seen exactly what impact the general election will have on _space’s public sector business, with all of the main parties almost guaranteed to make some form of cut backs on public service spending.

But, if Mr Charlton’s plans take off, the effect could be minimised by snaring more private sector clients with a growing list of services.

YOUR SAY: Has your business been impacted by cuts in public sector spending? Tell us about your experiences by emailing andrew@bdaily.info.

This was posted in Bdaily's Members' News section by Ruth Mitchell .