Spotting an opening in the north-east construction market has paid dividends for Dundee business Alpha Projects.
The company was set up just under seven years ago with a team of only three.
This has now soared to around 100 people working from its offices in Dundee, Montrose and Aberdeen.
The firm is a principal contractor, specialising in construction, fit-out and refurbishment projects in the commercial and residential sectors.
Alpha Projects origins
Alpha’s commercial director Paul Cortese explained the business opportunity they saw: “We identified a gap in the construction market in the north-east for a SME contractor to successfully operate within the works bracket up to £3 million.
“Within certain sectors, particularly commercial and local authority, there was a strong supply of contracting opportunities and perhaps limited resource within the market at that time – hence we took our chance and went after it.
“In our first full financial year of trading we achieved £2.1m turnover, a strong operating profit, built some good relationships and recruited some great staff.
“We work closely with architects, quantity surveyors and local authorities to deliver a wide range of works.
“Typically, we operate anywhere within an hour’s drive of Aberdeen or Dundee.
“We now directly employ around 80, but will typically operate day-to-day with approximately 100, inclusive of sole traders and agency workers.”
Healthy order book
Paul said Alpha has developed a strong brand and good reputation, created a lot of employment in a very positive working environment, plus trained and developed apprentices and staff within an industry that experiences skills shortages.
“Last but not least, we have delivered some great projects and achieved exceptional financial results in a challenging industry.”
The commercial director said the bosses at the firm are happy with the current business performance as the venture continues to deliver for its clients, invests in apprenticeships and focuses on profitability.
Asked about his expectations for the rest of 2024, he replied: “These are to close out the financial year strongly and focus on ensuring a healthy order book as we approach 2025. This is what we expect and will be working to achieve.”
But Paul pointed out that the cost to train an apprentice is prohibitive.
He explained: “Rates have increased exponentially from when we started the business to now, and I believe this is limiting apprenticeship opportunities within our sector, as it’s no longer affordable.
“There needs to be a balance. If we keep increasing rates at these percentage levels, the opportunities will continue to decrease – compounding the skills shortage issue further.”
Success in construction sector
So what has been the secret of Alpha’s success to date?
The commercial director replied: “Great staff, good workload planning and delivery, knowing our numbers and just generally being good people – not really a secret.”
On future plans for the firm, the commercial director added: “We are just focused on doing a good job for our clients, retaining/recruiting good staff, maintaining profit levels and ensuring we manage credit risk. If we do all that, the business will have a positive future.
“There is still significant growth available within our operating region – however revenue growth won’t come at the expense of any of the above. We will continue to grow carefully and responsibly I’m sure.”
Conversation