Is there a Blueprint for Improving Supply Chain Stability in Social Housing?

Soaring costs in the construction sector are causing severe problems for SME construction firms whose balance sheets were dented by the pandemic.

A recent Inside Housing article highlighted the plight many small construction firms face and the knock-on effects for social housing providers.

According to the article, the final quarter of 2021 saw 866 construction firms become insolvent in England and Wales. That compares with 717 in Q3, 597 in Q2 and 403 in Q1. In Q4 of 2019, 779 firms went out of business, meaning the last quarter’s numbers are up more than 11% on two years before.

The rate of insolvencies is highly disruptive, both to the completion of badly needed new social housing projects and to repairs and maintenance. In many ways it couldn’t be happening at a worse time.

New Challenges

Housing providers are having to implement tighter processes for safety compliance and repair standards in line with new legislation. At the same time, many (probably the majority) of residents will struggle to pay higher energy bills over the winter and will be eager for energy efficiency upgrades as part of a net zero strategy.

When we need stability in the supply chain most, we have more instability. Meanwhile, it remains a priority for most housing associations and local authorities to support their local SME community. Is there a solution?

More Sustainable Supply Chains

There are solutions, but they’re not a quick fix. The priority is to build a more sustainable supply chain of SME businesses. As with anything related to sustainability, this means investing for the longer term.

Osborne believes in investing in our supply chain partners so that they live up to our values of Quality, Integrity, Openness, Caring and Progressive, whilst also aligning to the values of our customers. We help them to develop their systems and processes so that our customers and their resident customers enjoy a consistently excellent experience. SME supply chain development is all part of our commitment to delivering social value.

Suppliers who demonstrate a collaborative approach and a commitment to continuous learning can expect a commitment of greater continuity of work. This, we believe, is the blueprint for bringing stability to the social housing sector while also promoting a thriving SME community.

To find out more about how we cultivate sustainable supply chain partnerships contact James Dougall ([email protected]).