**London**: Mark Mitchell, Chairman of Cornwall Group, emphasizes the critical need for transparency and communication in the supply chain, addressing economic pressures affecting the industry. He urges stakeholders to openly discuss financial conditions to foster resilience and adaptability amidst rising operational challenges and insolvencies in the construction sector.
In an open letter addressed to the industry, Mark Mitchell, Chairman of Cornwall Group, outlines the critical importance of transparency and communication throughout the supply chain as essential for survival in today’s challenging economic landscape. The letter, published in Window News, reflects the realities businesses face amidst economic pressures, despite official economic reports suggesting the UK has narrowly avoided recession.
Mitchell emphasises that Cornwall Group relies on borrowing to sustain growth, strategically investing in its operations to stay at the forefront of a rapidly evolving industry marked by technological advancements. This year, the company has pledged to invest £5 million, earmarked for the establishment of three new toughening plants as well as enhancements in their transportation, machinery, and IT systems. He states, “Every pound of that is a strategic investment in our future,” demonstrating a commitment to maintaining quality and service standards.
The economic climate, however, presents obstacles, with Mitchell noting that businesses across various sectors are grappling with slim margins, insufficient demand, and increasingly rising operational costs. The glass industry, in particular, faces substantial challenges as many firms appear to be accepting jobs without adequate financial viability simply to maintain order flow. “Some are simply trying to keep their order books full, even when the financial viability of those jobs is questionable,” he indicates.
Mitchell reveals alarming statistics about the industry’s condition, mentioning that over 4,000 UK construction firms went into insolvency in 2024, a stark 17% increase compared to the previous year. This situation has already led to the closure of several long-established firms within the sector.
The Cornwall Group Chairman advocates for a culture of transparency within business relationships, asserting its non-negotiable nature amidst current economic troubles. He urges customers and partners to communicate openly about their financial situations, arguing that understanding such circumstances upfront can help mitigate risks for all parties involved. “If a customer is struggling, we’d rather know upfront so that we can look at the problem together,” he states, highlighting the principle that a lack of cash flow can be more detrimental than a shortage of orders.
Mitchell reiterates that the company is committed to long-term growth through responsible borrowing and strategic investments. He stresses the importance of resilience and readiness for future economic improvements, concluding with a call for all stakeholders — customers, suppliers, and competitors alike — to foster honest communication and realistic assessments regarding financial margins.
The Cornwall Group, established in 1978, has navigated numerous economic challenges in the past and remains steadfast in its belief that integrity and strong partnerships are pivotal to sustainable success in the face of adversity.
Source: Noah Wire Services
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