When Innovation Isn’t Enough: What the Mansell Story Tells Us About the Challenges Facing Construction
The recent announcement that Mansell Building Solutions has filed a Notice of Intention to Appoint Administrators has resonated across the construction sector. A business recognised for its investment in Modern Methods of Construction (MMC), manufacturing capability and innovation has nevertheless found itself facing the same commercial realities affecting many organisations throughout the industry.
Whilst every company’s circumstances are unique, the situation raises wider questions about the pressures facing contractors, specialist subcontractors, manufacturers and consultants alike. Are procurement models keeping pace with innovation? How can businesses manage growing cashflow pressures? What impact are project delays having on supply chains? And what needs to change if the industry is serious about encouraging investment in productivity and MMC?
Key Themes to Explore
- The Industry’s Cashflow Crisis
- Late decision making.
- Delayed starts on site.
- Deferred planning approvals.
- Lengthening payment cycles.
- Working capital pressures throughout the supply chain.
- The Gap Between MMC Ambition and Market Adoption
- Government support for MMC.
- Continued reliance on traditional procurement routes.
- Contractors and clients seeking lowest capital cost rather than whole-life value.
- Investment risk borne disproportionately by innovators.
- The Increasing Financial Fragility of Supply Chains
- Recent contractor insolvencies.
- Impact on affordable housing delivery.
- Loss of specialist expertise.
- Consequences for clients and local authorities.
- Procurement Reform and Collaborative Contracting
- Does lowest-price procurement still work?
- Need for early contractor involvement.
- Two-stage tendering.
- Alliance and partnering approaches.
- Risk allocation and commercial sustainability.
- Turning Ambition into Deliverability
A link back to the Poole Dick Question Time series:
“Throughout the Question Time series, our panel repeatedly highlighted the importance of balancing ambition with practical delivery. Recent events across the sector are a reminder that successful project delivery depends not only on innovation and vision, but also on creating commercial environments that allow organisations to invest, grow and remain sustainable.”
Andrew Bayley – Director, Poole Dick
The Northwest continues to possess enormous potential for growth, regeneration and housing delivery. However, realising that potential will require more than ambitious targets and innovative technologies. It will require procurement approaches that encourage investment, payment practices that support supply chain resilience, and genuine collaboration between clients, consultants, contractors and manufacturers.
If the industry is to deliver the homes and infrastructure the country needs, ensuring the commercial sustainability of the organisations delivering them must become part of the conversation.
To discuss any of the points raised in this insight, please contact Andy Bayley, Director, Poole Dick – e: abayley@pooledick.co.uk
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