If the last 12 months taught us anything, it’s to not take the macro market for granted. But where are things headed in 2025, and what does the façade contractor industry need to double down on in the run up to 2026?
The façade contracting industry is facing a slowdown in backlogs across several key markets. Navigating these challenges, maintaining profitability, and securing future revenue lies in diversification.
In certain regions, such as the Canadian high-rise market, the slowdown is apparent. Busy markets like Toronto are experiencing reduced project backlogs, with many predicting a rebound in 12 months. Meanwhile, other markets, such as low-rise commercial or podium construction, are showing steady activity.
The consensus is that façade contractors must act now to adapt their strategies, particularly with the challenges they face:
Diversification isn’t just a buzzword; it’s a necessity. Here’s how façade contractors are diversifying across markets, products, and talent:
Particularly in the Canadian market, contractors are aggressively entering the U.S. Places like New York, California, and Texas. By leveraging existing relationships with general contractors and expanding regionally, contractors can fill gaps in their pipeline.
A recent example we’ve seen is a Canadian unitized façade contractors, shifting to deliver stick-built and modular wall systems, adapting to local market demands. Moving markets and locations isn’t easier, but the world is certainly a smaller place post-COVID.
High-rise specialists are exploring low-rise commercial projects, podium construction, and alternative façade systems like rain screens and modular walls. Diversifying into lower-value projects can sustain pipelines and keep operations running efficiently.
Expanding your capabilities into similar product lines is an obvious choice.
The talent challenge is critical, especially when backlog shrinks. Contractors are:
Some companies are taking diversification to a global level, acquiring businesses in Europe, the Middle East, and the UK. By expanding internationally, these contractors mitigate risks tied to a single market’s slowdown.
The UK contracting market has faced significant challenges, with well-known names like Charles Henshaw and Norman Underwood entering administration. Yet, opportunities remain for those willing to think differently.
Italian and Eastern European contractors like Permasteelisa and Staticus are thriving by leveraging high-end engineering and design teams based abroad to deliver in London.
UK contractors should consider relocating design and engineering bases to talent-rich, cost-effective regions to gain a competitive edge.
The façade contracting industry in 2025 is at a crossroads. Contractors who embrace diversification, invest in global talent, and adapt to market changes will emerge stronger. Whether you're looking to expand into new regions, diversify your offerings, or optimize your operations, the time to act is now.
If diversification is part of your 2025 strategy, let’s talk. Our team is ready to help you develop a tailored plan to achieve your goals. Contact us today.
The wrong person for a key position in your business can do more than just slow down a company—it can set it back for years. Hiring in facades is a complex beast, and while the immediate effects of a bad hire are obvious, such as losing 6 to 9 months of productivity while recovering, the long-term impact can be even more damaging.
Many business leaders, after experiencing a failed hire, become reluctant to take risks on future hires. This fear keeps them stuck in the weeds of daily operations, unable to focus on growth areas like product launches, market expansion, or strategic development.
The problem is, in today’s fast-paced business world, standing still means falling behind. As competitors continue hiring in facades to innovate and expand, companies that fail to grow are effectively in decline. Worse still, employees begin to notice when a business isn't investing in growth or their development. Talented team members may leave for competitors who offer more opportunities for career advancement, exacerbating the decline.
But just how much do disaster hires cost within the construction industry? Let's break it down.
Hiring and onboarding expenses: When a company hires an employee, it invests time and resources into recruitment, interviewing, and onboarding. This process includes advertising the position, screening resumes, conducting interviews, background checks, and providing training.
According to the U.S. Department of Labor, the average cost of a bad hire can be as much as 30% of that individual’s first-year earnings. In construction, where skilled labor wages are high, this can easily amount to tens of thousands of dollars.
Wasted salary: A disaster hire may be paid for several weeks or even months before their unsuitability for the job becomes apparent. During that time, the company pays out wages without receiving the expected value in return. For skilled positions like project managers, engineers, or electricians, this wasted salary can add up quickly.
A key factor in construction is the importance of deadlines. Projects are often governed by strict time constraints, and delays can result in penalties or lost revenue for the company. Disaster hires can derail these timelines in several ways:
In an industry where liquidated damages for late completion can be tens of thousands of dollars per day, the impact of delays caused by a bad hire can be financially devastating.
The long-term costs of a disaster hire may extend beyond a single project. If a project suffers from delays, safety incidents, or quality issues due to poor hiring decisions, it can damage the company’s reputation. Clients may lose confidence in the company’s ability to deliver on time and within budget, leading to fewer contracts and lost revenue opportunities.
In competitive markets, construction firms rely heavily on their reputation for quality, safety, and reliability. A single disaster hire can jeopardise this, costing the company not only financially in the present but also in terms of future growth and profitability.
The costs of disaster hires in the construction industry are far-reaching, encompassing immediate financial losses, project delays, safety risks, diminished morale, and long-term reputational damage. While it’s impossible to avoid every bad hire, construction companies must prioritise robust hiring practices, thorough vetting, and continuous training to minimise these risks.
By doing so, they can avoid the hefty price tag that comes with a disaster hire and ensure the long-term success of their projects and business.
If you need to speak to the team about how to avoid this, do get in touch.
2024 has been a monumental year for us. Although we're based in the North West of the UK, we've earned the majority of our stripes in in North America and Europe. We've built a reputation for specializing in niche construction sectors, like building envelope and complex product industries. As the year comes to a close, we're celebrating record-breaking profits and looking ahead to an ambitious future—one that involves growing by 80% over the next 18 months.
Big goals call for bold moves, and Lignum Group is doing just that by expanding its leadership team. Under the guidance of CEO Tom Wood, the company is taking strategic steps to continue its upward trajectory, including the launch of a new Commercial division and a complete revamp of its Client Services division.
Leadership isn’t just about titles and hierarchy—it's about growth, innovation, and creating meaningful partnerships. The new Commercial division will play a crucial role in driving these partnerships, particularly in the UK and North America.
With the addition of Adam Tilston as Commercial Director and Rick Fahey as Business Development Manager, both experienced professionals with proven track records, we're positioning ourselves for the future.
These changes don’t just reflect internal restructuring—they show Lignum’s commitment to offering even more value to its clients. Whether it’s finding the right talent for top-tier construction companies or creating tailored solutions for niche industries, Lignum is focused on elevating customer experience and staying ahead of the curve.
Reflecting on 2024 year, our CEO Tom Wood shared his excitement about the future:
“We’re thrilled to expand our senior team with these critical new roles. Our success in 2024 has been driven by our deep understanding of niche construction sectors and our ability to connect top talent with leading companies, particularly in North America. With the new Commercial division and enhanced Client Services, we can build on our momentum and achieve our ambitious growth targets.”
If you've met Tom, you'll know his passion for the industry is palpable, and our growth strategy is more than just a business move—it’s about building lasting relationships and staying true to our core mission - to get results for both candidates and clients.
Over the coming months, we're planning to expand the team even further, continuing to push into the North American market while staying connected to our UK roots.
“We’re proud to keep our headquarters in Warrington as we grow globally,” Tom adds. “It shows our commitment to local talent and to creating a company culture that values community, even as we expand internationally. We’re confident these changes will help us deliver even more for our clients and candidates alike.”
As we head into 2025, we're not just aiming to grow - we're going to thrive. With a revamped leadership team and a forward-thinking strategy, the future certainly looking exciting.
Wouldn’t it be great if we could predict the future? It’s fair to say every Board or business leader has to constantly deal with the challenges of what’s next. Trying to plan for the short, medium and long term isn’t easy. To deal with the demands of the now, next and the unknown; it's critical to have a C-Suite team that's capable of managing through this change.
When it comes to changing industries, the construction industry is on the cusp of major transformation. Driven by environmental concerns, economic challenges technological advancements, and changing consumer demands, the sector is rapidly evolving. We see this consistently as an executive search company that operates in this space.
So, that begs the question: How can you future-proof your C-Suite to lead your business in a changing industry? Read on to find out how.
Firstly, we need to look at what are the key trends reshaping the construction industry that businesses need to be aware:
That brings us to discuss the key strategies that construction companies can use to build a C-suite to navigate these changes:
There’s a lot to consider. That’s on top of the day to day operations. It’s not easy but it’s essential to be aware of what’s on the horizon and have a C-Suite capable of managing this. The message is clear: disruption is the new normal. The future belongs to those who can adapt, innovate, and navigate change.
By following the strategies outlined in this blog – embracing diverse skillsets, prioritising continuous learning, integrating technology, and focusing on sustainability – you can build a C-suite that thrives in disruption.
If you’re looking to discuss your C-Suite recruitment strategy whether that’s for now or as part of your future proofing plan, get in touch with our Executive Search team for a comprehensive review of your hiring plans.
Your go-to source for the latest developments in the world of construction across North America, the UK, and Europe. Onsite Insights delves into industry events, key trends, and market updates aiming to be a valuable resource for you.
If you’ve read our previous Onsite Insights newsletters, then you’ll have heard us talking about why businesses are going big in Texas. Our first featured article delves into the exciting development of a 135-acre facility in San Antonio, envisioned to encompass sports, entertainment, and retail spaces.
This is further proof of the potential and positivity around the construction industry in the state. This project not only highlights the robustness of the construction industry in Texas but also signifies resilience amidst economic challenges faced nationwide. This story showcases how the development underscores the appeal of regions like San Antonio in attracting individuals and families seeking new opportunities and vibrant communities, which bodes well for the future.
Unless you’ve been living under a rock, then you’ve likely seen the news in the media about labour shortages versus labour demand being one of the most prominent challenges for US construction businesses.
Talent attraction is a big discussion point, and we see it first-hand every day with our clients looking to fill roles on how else they can make their business stand out as an employer of choice in a competitive landscape.
That said, one way to deal with this is flipping it on it’s head and looking at retention.
Our self proclaimed king of culture at Lignum, Shane Weston who is also our Senior Delivery Manager at Lignum discussed this in a recent video about the importance of retention and the benefits it can bring to a business.
Linked to that, Construction Digital shared some practical advice around how to attract and retain in the construction industry in the below article.
The Spring Budget for 2024 was released earlier this week in the UK with The Chancellor announcing a number of initiatives to boost the UK economy. However, the construction industry felt that the announcements were a bit of a flop, with no significant improvements coming into force.
Read the latest thoughts on many industry figures below.
Our client is a global leader in the manufacturing and supply of aluminium products, serving a diverse range of industries, including automotive, aerospace, industrial and construction.
Position: Quality Manager
Location: Arkansas (relocation assistance provided)
Salary: $105-120k (negotiable dependent upon experience)
Ideal Background:
If this role looks like a quality opportunity for you, apply now.
Family-owned businesses come with unique challenges.
For family-owned businesses developing their strategy at an Executive level for 2024, these factors should be considered to ensure they give themselves the best possible chance of success in terms of elevating the business to reach the next stage of their journey.
At Lignum Executive, we’ve had a couple of conversations with CEOs and Boards within these types of businesses about how they approach navigating the challenges before hiring an “outsider” in the shape of a senior leader to come in and drive the business forward.
With that, our CEO, Tom Wood and Commercial Director. Liam Gover cover this in more detail whilst sharing recommendations on practical steps to take.
Your go-to source for the latest developments in the world of construction across North America, the UK, and Europe. Onsite Insights delves into industry events, key trends, and market updates aiming to be a valuable resource for you.
The construction industry faces a critical challenge in meeting labour demand, requiring an additional 501,000 workers in 2024 and 454,000 in 2025, according to Associated Builders and Contractors (ABC).
That’s some big figures to fill. Essentially, just short of a million workers over the next 2 years.
In recent years, with economic and geopolitical issues on top of the COVID-19 pandemic, there were significant external challenges for the industry to contend with, but now labour shortages seem to be the most pressing issue.
So what’s causing this? There are many factors at play that are contributing to this shortage.
In a recent article, ABC explored the the roots of these problems as well as outlining how the construction industry can address this specifically with a comprehensive approach to workforce development, including apprenticeship programs and immigration reforms.
Read the full article to gain deeper insights into this urgent industry challenge.
It’s no secret, we’re all getting older. Sorry to break it to you if that comes as a surprise but what’s the point we’re making.
As alluded to in the article above, a big reason for the ongoing labour challenges across the US is retiring with their research referencing that more than 1 in 5 construction workers are 55 or older. The issue of age is having a significant impact on many industries, with the construction industry specifically forecasted to be one of the hardest hit.
Our Building Envelopes Delivery Manager, James Hankey, delved into this in a short video you can watch below, where he shared how it’s estimated that up to 40% of the US construction workforce will retire in the next decade and the impact on the industry.
That said, it doesn’t need to be seen as doom and gloom.
Actually, with an older workforce; it can bring untold benefits. Take note of this recent article from Fortune on how this increase in older workers could have a profound effect on your bottom line if you have a robust retention strategy in place.
Exploring the transformative potential of modular construction, a freshly released report has once again hailed its role in modular mitigating the housing crisis across Canada. However, it needs an enabling environment to harness its advantages, including accelerated construction timelines and reduced costs.
Authored by Nevena Dragicevic from the CSA Public Policy Centre, the report emphasises the crucial need for an enabling environment to unlock the full potential of modular methods. With recommendations spanning from regulatory consistency to improved financing access, government leaders are urged to seize this opportunity for innovation and efficiency in construction practices.
Check out the detailed report below.
Our pick of the week comes from The Metropolis of Quebec or La Métropole du Québec to locals. As the largest city in the province of Quebec, Montreal serves as its economic, cultural, and social hub, with this role based at our client's headquarters in the city.
Our client is a successful architectural glass and metal installation company operating within the commercial construction industry, focusing primarily on large-scale projects. This high-energy, fast-paced business are looking for a Senior Project Manager to drive projects to completion efficiently.
Job Title: Senior Projects Construction Manager
Salary: CAD100,000 – CAD130,000
If this role sounds magnifique, then apply below.
In a candidate-driven market, choosing the right recruitment partner who understands how you operate and delivers on your specific needs is integral.
For many years, the recruitment industry has developed a bad reputation, particularly from hiring companies who often vent about receiving dozens of CVs from recruiters, yet hardly any that fit the bill for what they need.
Our approach is in fact the opposite.
Our CEO, Tom Wood and Commercial Director Scott Redfern discuss how our strategy has evolved to focus more on quality-over-quantity and the benefits it has brought to the speed-to-hire process for clients.
