Anyone hoping for better news in the construction industry will have to wait longer as data shows hundreds of construction firms entered insolvency in the first quarter of the year.
The collapse of Carillion may have grabbed all the headlines due to its high profile and size, but the ripple effect is already looking a lot worse with a total of 780 construction firms going insolvent in the quarter one of this year.
The results demonstrate how suppliers can be hit hard when they rely on one big customer for the majority of work. The unfortunate reality is it can be much harder for a business to recover from the loss of a big client simply because it will either mean finding another client willing to supply the same volume of work or finding several to make up the shortfall.
Worse still many contractors will have had to face the reality that they may not be paid for work carried out as part of ongoing contracts. For the 780 firms caught up in the wave of insolvencies the losses generated will have proved to be unsustainable resulting in insolvency becoming the only option.
If you own a business threatened with insolvency contact us today to see how we can help.