A HEREFORD firm has invested a whopping £1.5 million in new equipment as it seeks to ride out the waves of an economic tempest.

Wye Valley Group co-owner Andrew Howell, who runs the Rotherwas-based business with his sister Sue, remains upbeat, despite “challenging” conditions over the last year that has seen many businesses in the sector failing.

The family-run business, which includes Wye Valley Demolition, Wye Valley Metals, Wye Valley Skips, Hereford Quarries, Auto-Breakers, Warehouse 701, Merchant 701, Hereford Self-Storage, and Recycling Metals & Waste, employs over 150 people from their offices at the Eastside Recycling Facility.

Mr Howell said: “It is no secret that economic conditions over the past year have proven challenging for everyone, with inflation running riot and interest rates soaring.

“No less than 14 construction companies went to the wall in the last 12 months and six demolition companies have fallen into administration in the last four months."

But Wye Valley Group continues to weather the storm, Mr Howell said, with group figures holding up against the corresponding six months for the previous year - a feat he puts largely down to the "hard work and sheer effort" of employees.

ALSO READ:

Mr Howell said recent investment will prove critical to future-proofing the group’s financial future.

The purchase of six new lorries for Hereford Quarries has increased their fleet to 12 tippers and two grab lorries, while they have also added a new hook loader with drag trailer, rehandler, and twin-ram baler to the fleet, with two skip loaders arriving imminently.

Further plans are also in place for rolling replacement, new software, and investment in the group's sites.

"We simply cannot rest on our laurels,” Mr Howell said, adding that he hopes Lugg Bridge-based Hereford Quarries will reap the benefits of the latest investment.

But he sounded a note of caution, with the construction industry in particular still struggling.

“It looks like inflation has stopped going up and interest rates seem to have peaked, but we are not out of the woods yet,” he added.

“The economy is tight, and business is challenging. While we are still riding the waves and generally maintaining turnover and profit levels, the only way to grow is through investment in the business – and we hope to continue to do that.”