Covid forced 25% of water supply chain to cut jobs

More than two-thirds of companies in the water sector supply chain had to furlough staff due to the pandemic.

That is according to a survey by British Water, which showed 77 per cent of businesses used the government scheme.

Lila Thompson, chief executive of the trade body, said 23 per cent of its members reported cash flow problems because of coronavirus, while 25 per cent were forced to make redundancies.

Speaking about the impacts of the pandemic at a Westminster Forum event, Thompson urged the water sector to work collaboratively with members of the supply chain to protect businesses that had been financially affected.

Thompson added that 34 per cent of companies anticipated business would remain at a similar level as before, 33 per cent predicted a decrease in business, while 10 per cent saw the opportunity for an increase in trade. A less optimistic view was held by 7 per cent of survey respondents that said future redundancies may have to be made.

Mitigating these serious impacts on suppliers, Thompson said British Water was encouraged to see the participation in Ofwat’s innovation fund, which includes a dedicated competition for small, medium enterprises.

The sector has collaborated to compile the 2050 Innovation Strategy that includes plans for a Centre of Excellence to share innovative ideas and best practices. The open data platform will offer an opportunity for any interested parties to pitch ideas and work together towards common goals.

British Water board member Tania Flasck previously warned that companies may experience delays from suppliers in the UK and overseas as the impact of covid-19 is felt. She advised open communication around upcoming projects to give smaller companies a pipeline of work to bid on to sustain themselves during months of uncertainty.