Firm says construction arm will see turnover hit £2bn next year
Mace is the latest contractor to shake up its construction business with the bosses of its major projects and public sector divisions both leaving at the end of the year.
The firm expects to see turnover from contracting hit £1.7bn this year – a rise of 21% on 2022’s figure – with the business targeting revenue of £2.4bn by 2026.
Under the restructure, its major projects and offices arms are being merged into one division called private sector creating a £750m business under the stewardship of Ged Simmonds.
Current major projects managing director Andy Jones, who joined the business from Carillion in 2018 where he was chief operating officer, will leave at the end of the year.
Also leaving next month is Terry Spraggett, the firm’s managing director of public sector and life sciences who has been with Mace for 18 years.
Mace said an interim boss will be appointed in January before the search for a full-time replacement for Spraggett begins.
In a statement, Mace said: “Andy leaves a legacy of strong talent, having supported the delivery of some of the most complex and challenging construction projects anywhere in the world, including playing his part in the iconic Battersea Power Station.
“Terry has played a key role in the growth of Mace Construct [and] building Mace Construct’s presence in the public sector and then creating a life sciences work stream in the Public Sector & Life Sciences business unit.”
The firm’s construction chief executive Gareth Lewis said the firm has opened a new office in Cambridge to target the city’s life sciences boom with its public and life sciences arm expected to double workloads to £400m by 2026.
Its life sciences fit-out work will be carried out by its interiors business while the firm has created a new infrastructure business which will include its HS2 work at Brimingham Curzon Street and Euston as well as its aviation schemes.
The firm said its fit-out business, which recently won a £50m job at 10 Gresham Street, has taken on 24 staff from collapsed contractor MJ Lonsdale at its 81 Newgate Street and Woolgate Exchange jobs in the City.
Lewis said he expected the London office market to stay flat next year but added: “I think it will go mad again in 2025. There is a massive shortage of grade A office space in London. If firms haven’t got a fantastic office, they’re not going to attract staff.”
Last week, British Land it was seeing increased demand for larger offices while Landsec said the number of people going back into its offices was up 22% year-on-year to September.
Lewis, who added the rejig had been in planning for 18 months, said turnover from construction is set to be £2bn next year with two-thirds of this figure already secured.
Construct currently employs 1,750 people but this is set to top 2,000 by 2026, Lewis said.
Several firms have announced high-profile departures in recent weeks with Skanska building boss Steve Holbrook going earlier this month, while Wates construction boss Mark Tant went last month.
And Sir Robert McAlpine is axing up to 100 roles by Christmas, while Skanska is also completing a round of redundancies. Over the summer, Laing O’Rourke said it was cutting 200 jobs as well.
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