Construction Industry Is Not Shopping Around for the Best Deals
According to new research launched last week, 59% of those working in the construction industry do not fully understand what deregulation of the connections market means to their business. As a result only 41% are ‘shopping around’ for the best deals when looking to connect power to their construction projects.
The independent research was conducted on behalf of Dragon Infrastructure Solutions Ltd among 122 construction industry decision makers. Its aim was to identify what impact the 1998 deregulation of connections has had on the construction sector.
According to the report ‘Connections in Construction’ one in five (22%) still continue to go to a single supplier time and again rather than take advantage of the now competitive market. The study suggests that construction companies are paying a heavy price for this approach, and confirms that 58% of companies who ‘shopped around’ experience an improvement in costs and 57% experienced an improved level of tailored service.
Taking the independent route has also impacted on creativity, with 75% of construction companies feeling they receive a more creative solutions by working with an ICP
The study also wanted to quantify the savings deregulation has brought. On average developers and construction companies are saving 12% in costs and 18% in time, per project, simply by using one of the ICPs and for an amazing 1 in 5 of those using an ICP the saving is in excess of 21%.
It was also found that 44% of industry professionals that do ‘shop around’ believe this is forcing standards and services to improve, allowing connections to be better value for money and making organisations adopt a more customer focused approach.
Debbie Edgar, CEO at Dragon Infrastructure Solutions comments: “We thought that an industry report might help Dragon and others understand the impact of deregulation in our market. Our research suggests a construction sector of haves and have nots. Some are taking full advantage of the deregulated market by shopping around and they are enjoying significant savings and benefits as a result. In contrast many others are still tied to old practices and providers. This is having a detrimental effect on the market as a whole, allowing a handful of big organisations to monopolise the market, when the power should actually be with the customer.
Dragon have addressed many of the biggest issues facing the connections industry including but not limited to flexible payment plans, an accelerated quotation process and bespoke solutions, to name but a few. We have created these solutions to ensure we meet your budget and your timescales.
“Seventeen years on from deregulation of the electricity market, our report shows some good progress has been made, but the construction industry still has some way to go.”
For more information about Dragon Infrastructure Solutions contact 0333 666 8666.