The construction industry is in for a tough ride, whatever the Government now does to help, according to the managing director of Oxfordshire’s largest building company.

Bob Rendell, of Abingdon-based Leadbitter, said: “Talk from the Government about increased public spending to bail out the building business is really hype. We face a difficult 2010 and 2011, whatever happens now. ”

And the irony here is that the company, which employs 685 people (up from 662 this time last year), has just emerged from a very good 2008 — achieving £325m turnover and £11m pre-tax profits. It was shortlisted for the prestigious Building Awards Contractor of the Year (for businesses with up to £500m turnover), and will have a very good 2009, too.

Mr Rendell explained: “The turning tanker syndrome applies here. This year will still be good because the lead-in time on orders means we will be OK.

“In other words, the projects we are working on now were already in the pipeline before the downturn.

“But by the same token, we are already too late to pick up big Government contracts for 2010 and 2011 as it takes at least two years for a large project to get off the ground.”

His frank remarks to The Oxford Times bring home just how deep and long-lasting the downturn — recession, depression, slump, call it what you will — may turn out to be, and provide an insight into how this downward spiral in economic activity is progressing.

The only crumb of comfort for Leadbitter is that changes in Government guidelines should soon mean the company will qualify at least to bid for large-scale, post-2011 Government projects — for example, under the Government’s Building Schools for the Future programme.

At present it is frozen out of the framework of firms that may make such bids because only companies with national coverage may do so; and that disqualifies Leadbitter. Despite being the UK’s 25th biggest builder — with offices in Plymouth, Bristol, Cardiff, Southampton, Sittingbourne, and Exeter (as well as its Abingdon HQ) – it still counts as a regional builder, not a national one.

Mr Rendell said: “This has been a huge point of contention, but there is a positive feeling that the framework will change soon.”

As the saying goes: ‘When the going gets tough, the tough get going’; the change, if it comes, will be as a result of persistent lobbying.

He said: “We have close links with schools in the area and also run a flourishing local apprentice scheme, so it doesn’t seem right that only the very largest companies should qualify for Government orders to build local schools and academies.”

But his remarks have chilling implications for the building industry as a whole in the coming economic shake-down. Smaller companies than his will still not be allowed to bid, and of course competition for those Government orders will be intense. He predicts that many building firms will not survive.

His plea to the Government is twofold. Firstly, that it should speed up the planning process. On this point, he said: “Minority pressure groups too often work against the interests of the majority. I agree that people who want to protect badgers, or newts, or bats, should have their say. But it has gone too far now.”

And secondly, that the Government should think through the consequences of the changes it introduces.

He cites a change introduced in March 2008, when the Government announced plans to disband the Learning and Skills Council (LSC), the agency which funds building in the tertiary education sector. He said: ”The announcement led to the LSC being buried in applications and in January this year, tertiary education projects not yet on site were placed under a three-month moratorium — making the general situation worse.”

He added; “The local authorities are to take over the LSC’s role but there could be a period of administrative paralysis as the new supervisory agency, The Young People’s Learning Agency, establishs its precise working relationship with the local authorties.”

He said that, traditionally, construction firms were the last to go into a recession and the last to come out, thanks to the tanker-turning syndrome. But he repeated that 2010 and 2011 “are where the trouble is”.

He said that there was precious little office, commercial, retail, or residential work in the pipeline and competition would be intense for the limited amount of work building university student accommodation, sheltered accommodation, health authority projects, leisure, and affordable housing.

He added that Leadbitter had weathered recessions in the past and would do so again because it had achieved the critical mass — or sheer size — to do so.

But achieving that size was not easy.

When Bob Rendell bought the business from his father in 1985, it turned over £300,000 and employed five people.

When he sold it to Dutch firm Heijmans in 2003 it had three offices, turned over £86m, and employed 249 staff.

In 2006 Leadbitter bought up rival builder Denne for £17m, a move which Mr Rendell said gave the business the critical mass essential for survival.