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Construction costs discounted due to recession

Dealers could take advantage of a drop in construction costs due to the recession.

Construction companies are having to discount to attract more work from dealers and manufacturers that have been riding out the economic downturn.

Mike Short, managing director at automotive construction company MDG, told AM: “Things at long last are beginning to pick up in an organised fashion.

"We are having a lot of conversations with dealers and it looks as if a lot of business will be looking to build in the latter part of this year.”

Short said manufacturers had been waiting until the worst of the recession was over before pursuing rebuilds and relocations.

He said: “The cost of construction has naturally become discounted because everyone is looking for work; it’s a good time to have discussions about construction.

“Dealers are seeing the benefit of the recession in discounted costs which will help because there has been considerable pressure on cashflows for retailers.” 

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