In a recent interview, Wates’ new CEO, Eoghan O’Lionaird, discusses priorities around conflict avoidance, lean management, and decarbonisation.
- Eoghan O’Lionaird brings extensive management experience despite limited construction-specific knowledge.
- The company prioritises lean management to boost productivity without substantial technological investments.
- Addressing cladding remediation is crucial, involving significant financial provisions but avoiding legal battles.
- Focus on decarbonisation and collaboration with local authorities suggests potential growth in the retrofitting sector.
In a recent discussion, Eoghan O’Lionaird, CEO of Wates, reveals his strategic priorities, emphasising conflict avoidance with the supply chain, lean management implementation, and decarbonisation. O’Lionaird, although new to the UK’s construction market, brings a wealth of managerial expertise from diverse roles worldwide.
Despite his limited background in construction, O’Lionaird asserts his proficiency in general management, growing businesses through strategic differentiators, and assembling and motivating teams. His long-standing practice and enthusiasm for lean management, particularly in streamlining processes, promises significant productivity enhancements without substantial technology investments.
The firm’s 2022 results underscore the productivity challenge, as turnover increases outpaced profit growth, with a notable £72m provision largely for cladding remediation. O’Lionaird stresses collaboration over confrontation, opting not to pursue legal actions against suppliers. Instead, he highlights the firm’s collective efforts with the supply chain to address these issues.
O’Lionaird and Wates are committed to decarbonisation, with a strong presence in affordable housing maintenance and retrofitting. He criticises the government’s underfunding of retrofitting, advocating for increased taxes and borrowing to meet decarbonisation targets. His perspective suggests potential growth opportunities in this sector.
The diversified portfolio of Wates offers a buffer against macroeconomic challenges. The firm’s involvement in developments like the UK’s first gigafactory illustrates its strategic positioning in growth sectors. O’Lionaird anticipates continued opportunities, particularly in educational and correctional facility projects, bolstered by collaborative models with competitors.
Wates, under O’Lionaird’s leadership, is poised for strategic growth through an emphasis on lean processes, collaboration, and sustainability.
