Construction related insolvency rates
Source:The Insolvency Service
The graphs above paint a worrying picture. It has been forecast that bad debt in the construction industry will rise to £1bn by January 2024 and that the number of construction businesses on the brink of bankruptcy is at an all-time high of around 6,000. Construction has always had a high attrition rate with many companies failing each year. Between January and October 2023, 312 construction firms went into administration, representing a 58% increase on the previous year according to Creditsafe.
Some big names were in the failures including Buckingham, the largest general contractor to fail since Carillion, owing £108 million and putting over 500 employees out of a job. Housing has been similarly affected with all the major house
Anfield stadium expansion - Buckingham
builders warning of low profits. It’s not difficult to see why: high material and labour costs, high interest rates, inability to get credit and delayed payments. Once again it will be the supply chain that will be hit the hardest with sub-contractors and other small creditors unlikely to receive any of the money owed to them.
STOP PRESS: Stewart Milne enters administration
There has to be a better way.
Duncan Cartlidge
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