Readymix plans strategy change to improve profit
Readymix plans to focus on higher-value contracts after the company
reported falling profits.
Managing director Joe Doyle told CJ the company plans to recover
increasing materials, transport and labour costs. "We're looking at
value rather than going for bulk," he said.
CJ reported last month that materials firm Hanson is offering sales
staff profit-related bonuses as it concentrates on margins instead
of volumes.
Doyle said the materials industry has traditionally been prepared
to accept lower margins for bulk sales, and has been hit by soaring
operating costs. "I think all companies are going down this route
and this is where we end up."
He said a competitive market has made it more difficult to pass
operating costs down the supply chain. "Normally these costs can be
recovered from the market."