Bahrain contractors facing squeeze in downturn

Bahrain’s contractors are under extreme pressure and being forced to slash staff numbers due to the economic downturn, according to a major industry figure.

Nass Group managing director Samir Nass said the entire industry is being forced to downsize because there is little construction work currently available in the kingdom.

“There has been a huge slowdown. A lot of ongoing projects are coming to an end, others are slowing down and few projects are coming forward. Things are very difficult for everybody right now,” he said in comments published by Construction Week Online.

He added that cement consumption in Bahrain had recently dropped by 25-30 percent which indicated a “severe construction slowdown”.

The Nass Group is one of the largest cement manufacturers in Bahrain as well as the biggest contractor in the kingdom. In April Nass had a workforce of around 12,000, but numbers have since been significantly reduced, he said.

The website said industry insiders claim that two other big local firms are considering suspending their large-scale contracting operations due to a lack of work.

Nass declined to comment but didn’t rule it out.

“When you have a slowdown like this there is always a change of faces with new players coming in and others going out, but I cannot specify names,” he said.

“Contracting is a very volatile business and there is no guarantee of continuity which means that some people will have to reduce their staff until they get a new project.

“We have decided to be more aggressive in the current climate to maintain a certain level of turnover in construction.”

Nass said the company was looking at “a few projects” but would not reveal any details at this stage.

He said several government funded infrastructure projects and low cost housing developments would hopefully provide some stimulus to the construction industry in 2010.

The Nass Group includes 34 companies in construction and associated sectors such as manufacturing, trading, marine transport, ship repair, offshore engineering and land reclamation.

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