Construction sector insolvencies up 20 per cent since Carillion collapse
More than 2,700 businesses in the construction sector have entered into insolvency in the past year, while the number of insolvencies among UK building firms has risen by a shocking 20 per cent since the collapse of Carillion.
The data, which appeared in The Guardian, reveals the true extent of the major organisation’s fall on the sector.
Carillion was involved in a number of incredibly large-scale projects, both in the UK and internationally.
The group’s collapse in January has had a knock-on effect on the whole construction supply chain, as well as on numerous contractors and subcontractors.
According to the new data, as many as 2,764 construction firms were forced to enter into insolvency in 2016/17 – 780 of which have gone under since Carillion’s announced its collapse.
The new figures suggest that the fall continues to have a ripple effect across the sector – which today is facing a toxic cocktail of bad debts and endemic late payments.
Immediately after the group’s collapse, the number of construction companies falling into insolvency rose from 652 in the fourth quarter of 2017 to 780 in the first quarter of this year.
Since then, more and more firms in the sector have increasingly been grappling with financial difficulties, according to industry experts.