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How a care home construction firm overcame supply chain shocks

Paul Dixon, Managing Director of care home construction firm Lawrence Baker Limited, describes how future-thinking strategies and clever partnerships are driving success.

Founder Paul Dixon, also a director at Connaught Care Collection, strives to build innovative and contemporary care homes that meet evolving regulatory standards and CQC requirements.

He shares his experience on how his company is tackling today’s business challenges and emerging stronger:

How have you navigated recent supply chain challenges?

When the pandemic hit, we had four care homes under construction, and our supply chain for furniture and accessories was heavily reliant on China. As global shipping came to a halt, we quickly realised we needed a more sustainable strategy.

Initially, we bought and stored supplies from China in advance. But afterward, we made a strategic decision to focus on UK-based suppliers, especially for items like furniture and decorative accessories, to minimise future disruptions.

This shift has allowed us to gain more control over our supply chain while maintaining quality.

How do you manage the cost implications of moving to a local supply chain?

While it might seem costlier to source locally, we found it balanced out. We removed the middleman and directly managed the sourcing process, which required more internal management but didn’t drastically increase costs.

The long-term benefit of a more secure, reliable supply chain far outweighs any initial cost increases. For instance, instead of relying on international suppliers for accessories, we now source them locally with costs comparable to what we were paying before.

How have these supply chain strategies given you a competitive edge?

By prioritising relationships with our subcontractors and suppliers, we’ve built a loyal and reliable supply chain. We also have a policy of paying everyone early, which ensures that our partners prioritise our projects.

This approach paid off during Covid when we continued construction with minimal delays because our suppliers were willing to go the extra mile for us. Others faced significant delays.

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What role has cash flow management played during crises?

Cash flow has always been a priority for us. We’ve followed a conservative approach from the start, ensuring that we keep enough cash in the business to cover at least one month of turnover.

It’s not just about having cash but using it strategically to strengthen relationships and ensure uninterrupted operations.

How are you leveraging technology to enhance care home operations?

One of our most innovative moves was the adoption of Pure Air technology, which uses hydrogen peroxide to kill airborne viruses, including Covid-19. This has not only safeguarded our residents and staff but also reduced absenteeism among staff. Residents feel safer, and it gives us a unique selling point, especially since this technology is now a staple in all our care homes.

How did you justify the investment in Pure Air technology?

The initial investment was around £600 per resident, and ongoing costs are about £10,000 per year. But when you consider that we charge around £1,700 a week per resident, if this technology allows us to fill a room even one week earlier, it’s already paid for itself. Plus, the long-term benefits in terms of resident and staff safety make it a no-brainer.

What other tech innovations are you implementing?

We’re transitioning to fully electric care homes. This involves removing gas and relying on air-source heat pumps and underfloor heating, which aligns with our goal of becoming carbon-neutral. Additionally, we’re installing PV cells (solar panels) on our roofs to generate electricity onsite.

Although this comes with upfront costs, the payback period is now just five to six years, thanks to rising energy prices. Ultimately, we want our homes to be fit for the future and energy-secure, giving us greater operational independence.

What are you focusing on to attract and retain talent?

We tap into a national pool for on-site workers but face challenges recruiting for head office roles due to the smaller geographical area.

We prioritise hiring staff with care home experience. We often recruit through industry connections, especially for senior roles, relying on recommendations and referrals. For junior roles, we recruit locally, bringing in young talent to train and develop within the organisation.

To retain staff, we foster a family-oriented culture, organising quarterly events that include families to build a sense of belonging. We also offer competitive salaries, regular pay reviews, and additional holiday time during Christmas and Easter shutdowns, which go beyond industry standards.

Fit for the future

Barrie Davison, National Sector Head for Healthcare, says: “Lawrence Baker and Connaught Care Collective exemplify a Future Fit business. They embrace local supply chains and adopting innovative technologies, such as Pure Air, to enhance both staff and resident safety, resilience, and long-term wellbeing.

“By emulating their forward-thinking approach — focusing on sustainability, operational independence, and talent retention—other healthcare firms could strengthen their own competitive edge and long-term success. We’re ready to support businesses on this transformative journey.”

By acting now to prioritise change, your business could be more ready to boost future resilience, meet market demand, reduce costs, or access capital.

 

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