Tiler relying on retail after construction sector collapse

AFTER THE BOOM:JLT TILES in Co Kerry has dramatically overhauled its business focus in a bid to fight a sharp decline in profits.

The commercial and domestic tile-supplying business, established in 1994, now concentrates on retail sales rather than contracting work from the hard-hit construction sector.

Owner Joanne O’Regan says overall revenue is down 40 per cent this year while contracting business has slipped 60 per cent and will fall another 20 per cent in 2010.

“Two years ago a huge part of our turnover came from contracting but obviously that side of the business over the last year and a half has almost collapsed completely,” she says.

However, O’Regan says concentrating on retail has helped the business especially since relocating to larger premises in Farranfore in April.

She estimates retail sales, which were down 15 per cent in 2008, will jump by 20 per cent this year.

“The retail side is getting stronger and stronger every month. We are doing better here with the better display space and things have improved substantially with what we are turning over.”

The company was forced to make some contracting staff redundant reducing the overall workforce from 36 to 12 over two years. Short-time working was also introduced last year with staff working five- or three-day weeks depending on customer demand.

“Everyone has been brilliant and extremely flexible. We want to keep our staff because things always get better and it will recover.”

She has also cut back on a range of costs and is spending money differently.

“How we spend our money has changed. We do more advertising because we are more in retail now and promotional costs are up.”

She says the biggest challenge facing the business is market uncertainty.

“It seems to be slightly recovered and I see things getting a bit better. When it was bad it was like falling down 20 floors in an elevator shaft.”

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