Laing O'Rourke sets out to boost concrete frame business

Laing O'Rourke bosses will host a series of road-shows next month to outline detailed plans for a major revamp of its concrete frame business.

Chairman Ray O'Rourke is behind the reorganisation after becoming concerned that the firm is losing ground to rival contractors in its traditional core sector.

O'Rourke made its name as a concrete frame contractor but has been losing market share recently to firms like Byrne Brothers and PC Harrington.

The concrete frame operation is part of the Expanded business, which also includes piling and demolition arms.

Expanded managing director Steve Hollingshead told staff last week that a restructuring will result in the closure of the concrete frame operations' back-up offices in Cardiff, Birmingham and Manchester.

No job losses are planned as the admin teams relocate to O'Rourke's head office in Dartford and its new Scottish office in Motherwell.

Hollingshead said: "Moving forward, we will firmly focus on the quality of our workload and earnings, the efficiency of our management structures and the engineering excellence of our product.

"We will also clearly align our offering with the group's vision for the growing significance and role of pre-fabrication in delivering complex construction solutions."

Hollingshead rejoined the company last November after quitting his role as southern director two years ago to set up his own development firm.

New faces being brought in include Steve Cork to head the structures business in the South, with Viv Jones in the North. Mike Dobson and Andrew Smith have been appointed commercial directors.

An O'Rourke source said: "Ray is looking to reshuffle the pack a bit and regain the position as the number one firm when it comes to concrete frames. We were the undisputed market leader in concrete frames, but have been caught up by other firms recently.

"There is now a feeling that Byrnes and Harrington are winning more work and we have got to do something about it."

Last year, rival contractors Byrne and Harrington hit turnovers of £190m and £150m respectively.

Expanded's results are contained in the group's Specialist Trading division, which also includes Crown House, Select Plant and the Manufacturing business. The Specialist Trading Division turned over £1.3bn last year.