Caddick Construction looks to build future success

CADDICK Construction is aiming to capitalise on a recent major contract win with Arla Foods to deliver further work for the dairy giant.

And speaking to TheBusinessDesk.com, managing director Andrew Murray said despite difficult market conditions “the Caddick story is going to continue”.

Mr Murray said: “I’d like to think we’re sitting here in 12 months time with a successful Arla project and some more Arla work coming out. They won’t stand still and we can’t either.

“The Arla project has been a great acquisition for us. It’s a massive challenge to deliver it for them but we’ll take our usual sincerity to it.”

Knottingley-based Caddick Construction, part of Paul Caddick’s Caddick Group, was appointed earlier this year to build a £150m fresh milk dairy for Arla.

The £78.6m contract – the biggest in Caddick’s 33 year history – sees the company be responsible for the construction of the main dairy and energy centre at the development in Aylesbury, Buckinghamshire, as well as all ancillary buildings and associated site works.

Caddick Construction had already previously worked on a number of other Arla projects, including Stourton dairy in Leeds.

Mr Murray said the 75 week construction programme was complicated by the fact that Arla wants parts of the dairy to be operational before it is fully completed.

“we’re delighted to be involved in it,” he added.

In a wide-ranging interview, Mr Murray said that although the construction and general property markets were still difficult, there were opportunities.

And he said Caddick Construction’s standing in the marketplace and trusted name gave it an advantage.

He said although turnover had grown to £50m by the peak of the market in 2007, Paul Caddick had anticipated that the market was going to turn and his foresight enabled Caddick Group to survive the worst of the downturn.

However, Mr Murray admitted Caddick Construction had been affected by the economic turmoil. It was forced to shed a quarter of its staff and now employs 64 people. But it is now recruiting again.

“In construction our biggest asset is our staff. We’ve got wonderful staff and a great team here. We operate as a family business but with national contractor capability,” he said.

“What we are is sincere. If we say we’re going to do something we’re going to do it. And we do it. Everyone thinks the same way.”

Mr Murray said one of the biggest challenges for Caddick Construction was engaging staff with the volumes of legislation they have to adhere to.

The company has done this by offering prizes for site staff who get involved in training and help to deliver safety message to the community, including pupils.

An example of its community work is at The Hut in Castleford. Pupils from two secondary schools have been putting the finishing touches to the new £5m youth centre.

The students from Airedale Academy and Castleford Academy worked with international 3D artist Jim Harper to create a giant mural on the wall of the ten-pin bowling alley in The Hut.

Built by Caddick Construction for Wakefield Metropolitan District Council with funding from theGovernment’s myplace programme and administered by the Big Lottery Fund, The Hut aims to bring youngsters aged 13 to 19 from the towns of Castleford, Pontefract, Normanton, Knottingley and Featherstone together.

“My big belief is in sincerity and honesty and if you do that then you can’t be accused of letting people down,” says Mr Murray. “Repeat business is the best business and that’s what we thrive to have.”

Almost two-thirds of Caddick Group’s turnover comes from its construction arm. Revenues for the group are also generated through the group’s development arm as well as its involvement in Leeds’s professional rugby teams.

Mr Murray said the Caddick Developments arm – which is involved in property development and investment – was now looking again at opportunities following the turmoil of recent years.

However, Mr Murray said speculative development was being hindered by empty rates legislation: “It’s like an anchor round the neck.”

He admitted organic growth within the construction sector was difficult because of competition within the sector.

“We’ve looked at acquisitions before but then had to batten down the hatches.”