Construction insolvencies slow
The rate at which construction companies are falling into insolvency has slowed for the last two quarters.
There have been 6,179 construction industry insolvencies since the third quarter of 2010, according to number crunching by accountants PwC.
However, from a recent peak of 759 construction companies falling insolvent in the first quarter of 2012, the number dropped to 656 in Q2 and 631 in Q3.
Despite this, construction remains ones of the worst sectors across the board to suffer from insolvencies.
Jonathan Hook, PwC’s Engineering & Construction leader, said: “Whilst there has been a decline in the number of insolvencies over the last two quarters the industry remains under severe pricing and cash flow pressure. I anticipate further failures in the supply chain over the winter period with the first quarter of next year being the peak point for failures in the sector.”
Of the 6,179 construction insolvencies since Q3 2010, 1,799 (approximately 30%) were general construction and civil engineering firms, with the remainder made up of architectural, building, water projects, painting, roofing and plastering.
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This article was published on 15 Oct 2012 (last updated on 15 Oct 2012).