Construction insolvencies top the 9000 mark
Published: 30 July, 2012
UK: There have been 9113 insolvencies in construction and manufacturing since September of 2010, PwC figures reveal, despite the two sectors enjoying one of the best quarters in nearly two years.
In Q2 of 2012 (April to June) there were 15.5% fewer insolvencies in construction than the previous quarter, and nearly 8.36% fewer in manufacturing. But where most regions enjoyed a relatively good quarter, London lost 66 manufacturing firms – the biggest rise in any UK region at 50%.
London suffered 120 construction insolvencies in Q2 and has lost 962 firms overall in the industry since Q3 2010. Most regions enjoyed a slightly better quarter with Yorkshire, the West and East regions faring better.
In the West Midlands there were 54 manufacturing insolvencies for Q2 this year, compared to 83 in Q1 of this year, about 35% fewer.
Overall, since Q3 2010 3586 manufacturing companies have gone under and of those, 1027 have been industrial manufacturing companies, with the remainder including aerospace and defence, automotive, chemicals, metals and parts of transport and logistics.
Of the 5527 construction companies about 30% (1635) were general construction and civil engineering firms, with the remainder made up of architectural, building, water projects, painting, roofing and plastering.
Across all sectors there were 11% fewer insolvencies this quarter than the previous one, but under the ongoing cloud of economic and unemployment uncertainty, PwC experts said the slight reprieve in figures may not signal a long-term improvement with the same pressures continuing through to 2013.