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Jersey's leading business group has issued a rallying call to islanders and the government to "continue to invest" in local construction after the industry was dealt "another blow" this morning as three companies announced their closure.
Kalmac Builders, Mac Energy, and Mac Interiors – all part of the MAC Group – have ceased trading with immediate effect today. 78 jobs are impacted.
It comes little more than a year after Camerons and JP Mauger went under. The former stopped trading in February 2023, with JP Mauger following it into liquidation, with 51 job losses last May.
In a joint statement explaining that they had applied for insolvency, the three "devastated" closing companies explained that they had "suffered greatly" over the last year, having reportedly lost two thirds of their work in Jersey due to the “downturn” in the housing market.
Despite efforts to secure more work, the statement said the businesses had been "unable to raise the capital required to overcome the historical debt to allow the businesses to trade going forward" – a challenge that had only been compounded by "ongoing bad debts".
They confirmed that 78 employees would be "losing their jobs and livelihoods", which they described as "heartbreaking".
“We understand that this news will come as a shock, and we deeply regret the impact this decision will have on all our employees, clients and supply chain," the statement continued.
"We assure you, we will work with the liquidators to try and protect your interests during this extremely difficult and distressing time."
Jersey's Chamber of Commerce expressed their "sadness" at the news today, adding: "Our thoughts are with all those individuals and organisations impacted by this decision."
"This is another blow for Jersey's construction industry, and further evidence – if it was needed – of the challenging conditions the construction and development sector face at present," the group said.
"Coming a little after 12 months after the demise of Camerons and JP Mauger, the news by the Companies is not surprising. Trading conditions remain stressed, and order books for the sector remain low."
Pictured: Major building contractor Camerons stopped trading with immediate effect last year.
However, Chamber said it believed "further losses in the sector can be avoided, if public and private sector clients can be encouraged to continue to invest in their construction projects, big and small".
"Jersey's construction industry remains well-supported with good local organisations, professionals and tradespeople," Chamber said.
"Whilst borrowing and other finance costs remain high for private-sector clients, we urge in particular the Government of Jersey, through all its many public organisations, to 'speed up' their planned future capital projects and help local builders and tradesmen with opportunities to deliver quality construction projects.
"The sooner these projects can be turned into on-site activity, the better the chances of the local industry surviving the present challenging conditions."
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