As a recruiter in the construction industry, it’s crucial to stay informed about developments that may impact the market, particularly those related to supply chains and competition. Recently, the Competition and Markets Authority (CMA) raised significant concerns regarding local competition in the Midlands, following last year’s merger between two key duct and fittings suppliers, Lindab and HAS-Vent.
In its provisional findings from the second phase of the inquiry into this merger, the CMA highlighted potential issues, noting that the acquisition “has resulted, or may be expected to result, in a substantial lessening of competition (SLC) in the supply of circular ducts and fittings in the local areas centred around Nottingham and Stoke-on-Trent.”
These areas are particularly important for the construction sector, as the CMA found that Lindab and HAS-Vent are “close competitors and face only limited competition from alternative suppliers” within these regions. This could have serious implications, leading to reduced choice and higher prices, especially for specialist installers of ventilation systems operating in these areas.
During the first phase of the investigation, the CMA discovered that the merged company would potentially supply half of the circular ducts and fittings across England and Wales. However, Lindab and HAS-Vent disputed this, arguing that their combined market share is not as significant as the CMA suggested, thus challenging the notion that the merger would lead to a national SLC.
For those involved in construction projects in the Midlands, particularly those dealing with ventilation systems, these developments are important to monitor. The CMA has invited “any interested parties” to provide feedback on its provisional findings before 5 pm on 12 September, with the final report expected on 17 October.
Lindab, which operates in the UK through subsidiaries Lindab UK and Ductmann with 21 branches, and HAS-Vent, headquartered in Wombourne near Wolverhampton with 10 branches, have both indicated their willingness to continue cooperating with the CMA during this investigation. CN contacted HAS-Vent for further comment.
Staying ahead of these industry shifts is crucial for construction professionals and companies alike, as the outcomes of such investigations can have direct consequences on project costs, timelines, and supplier relationships.
For those interested in construction and building services roles, now is the time to get involved. Contact us today at construction@strong-group.co.uk or 02087636122 to find out more about the opportunities available.