A BUILDING firm has closed with the loss of 33 jobs in the latest blow to the Island’s construction industry.
Mitchell Building Contractors, which operated for 14 years, cited “spiralling costs” and a “broken planning system” as factors behind its decision to close with immediate effect yesterday.
Jersey Construction Council, which represents the sector, said it was “saddened” by the “unfortunate news” of another company’s demise.
In a statement, the building firm’s managing director Harvey Mitchell said: “After over 14 years being in business it is with great sadness and heartbreaking regret that Mitchell Building Contractors has had no option but to cease trading as of 2 October 2024.”
He explained that despite surviving the impact of the Covid pandemic, the company found the current marketplace “extremely difficult to trade in”.
Mr Mitchell highlighted “spiralling labour, plant and material costs” and also criticised what he called a “broken planning system with ill-conceived policies”.
He also drew attention to the limited number of available projects for firms: “We’re not seeing the volumes of work that we’re used to coming through.”
He said the situation had become “simply untenable” for the building company.
In July, Kalmac, MAC Energy and Eden Interiors – all part of the MAC Group – issued a joint statement saying that they had ceased trading with the loss of dozens of jobs. The statement explained that the companies had “suffered greatly” over the past year, reportedly losing two-thirds of their work in Jersey due to the “downturn” in the housing market.
Last year also saw the collapse of building firms Camerons and JP Mauger.
Jersey Construction Council chair Adrian De Gruchy said: “We are saddened by the news about Mitchell Building Contractors having to cease trading with immediate effect and the impact this has on their staff, sub-contractors and suppliers.”
He continued: “This unfortunate news follows the recent launch of the Island Construction and Engineering programme, which should give businesses some confidence that there is a proposed pipeline of projects and enabling works to allow other developments to commence.
“Despite recent business closures, the industry has a wide range of professional tradespeople, associated suppliers and consultants, with good long-term career prospects.”
Mr De Gruchy said that they would continue to work on “site-ready projects of all sizes and for private and public-sector clients”.
