Jersey’s construction firms are not profiteering but competing in a “troubled market” shaped by external and island-specific pressures, an industry body has said after a regulator warned of “potential competition risks”.
The Jersey Construction Council was responding to the Jersey Competition Regulatory Authority’s review into the sector, which identified “signs of poor market functioning” in several areas.
The review, which came amid a string of high-profile collapses in the sector, followed complaints about sharp price rises in the wake of Storm Ciarán – particularly in the scaffolding market.
It concluded that “effective competition is essential” to the industry’s future and committed to “further surveillance” of the market.
The review also confirmed the vital role that construction plays in Jersey’s economy, and the pressures that make operating in the island different to elsewhere – including high transport and freight costs, reliance on imported materials, and limited storage space.
We believe there is strong competition in a troubled market with many external and island-specific factors, where pricing is often aggressive for survival, as we have seen many firms failing
Adrian De Gruchy, chair of the Jersey Construction Council
In response, Jersey Construction Council chair Adrian De Gruchy said: “The JeCC welcomes that further ongoing market surveillance will be undertaken by the JCRA, as we believe there is strong competition in a troubled market with many external and island-specific factors, where pricing is often aggressive for survival, as we have seen many firms failing.”
The Style Group – which included AC Mauger, Style Homes and Style Windows – went bust last month, adding to a list of closures that included Camerons, JP Mauger, Kalmac, MAC Energy and Eden Interiors in 2023 and 2024, and K-Land Construction and Nicholson Builders this year.
The Construction Council said it agreed with the report’s findings that “fundamental economic and island-specific factors significantly influence and affect competition in the construction sector”, but pushed back against claims that firms were exploiting the situation.
It stressed that survey data showing that 75% of consumers disagreed that there is sufficient competition among contractors to ensure fair pricing was influenced by timing, with responses gathered in the aftermath of Storm Ciarán, when there were frequent shortages and delays.
The JeCC said it would continue working with the JCRA as it develops new guidelines and rolls out competition awareness sessions for trade associations and suppliers in 2026.