Payment terms means that the geotechnical industry may not yet have felt the full impact of the collapse of Carillion, warned Association of Geotechnical and Geoenvironmental Specialists (AGS) chairman Neil Parry yesterday.
Speaking at the AGS’ Member’s Day, Parry said that the 120 day payment terms that Carillion used means that some businesses are only just starting to see the result of the firm’s failure in their cash flows.
Nonetheless, Parry was upbeat about prospects for the industry. “The level of work from HS2 has not been as great as expected so far but it has provided some,” he said. “More is coming and other projects are picking up.”
Commenting on the high level of mergers and acquisitions in the ground engineering market in recent months, Parry said that he expects these larger businesses to have a positive impact on safety and efficiency in the sector.
Parry added that AGS, which is marking its 30th anniversary this year, has seen many names disappear from the industry since its inception but the organisation has had a “massive impact” on safety and working practices. He highlighted the launch of the AGS data format in 1992 as one of the organisation’s significant achievement. Parry vowed that the association will continue to focus on growth and wider industry collaboration.