Construction companies ‘treading water’ as insolvency rate reaches highest level in a decade

UK construction companies are going bankrupt at the highest rate in a decade as inflation, a drop in housebuilding and delays to major government infrastructure projects bite.

Data released from the government’s Insolvency Service, analysed by the Financial Times, shows that 4,280 operators entered insolvency in the year to June, a 16.5 per cent jump on the 12 months prior.

Rampant inflation has plagued the industry, bumping up the cost of materials, energy and labour.

According to the ONS, the price of construction materials is currently 42.7 per cent higher than pre-pandemic levels.

https://www.cityam.com/construction-industry-treading-water-as-insolvency-rate-reaches-highest-level-in-a-decade/