PwC: More construction insolvencies on the horizon
The number of construction firms going out of business will peak in the next six months, following 621 insolvencies in the final quarter of 2012, according to PwC
The first half of 2013 will be the worst for construction insolvencies, the advisory firm predicted.
Their latest figures show there were 2,743 insolvencies across the industry in 2012, compared with 2,387 in 2011, representing a 15 per cent hike.
Overall, there were 5,580 construction insolvencies since Q1 2011, reported sister title Construction News.
That included 1,559 for general construction/civil engineering firms and 373 were plumbing firms.
The final quarter of 2012 was more positive than others, with a 12 per cent drop in insolvencies compared with Q3 2012, making it the lowest quarter over the two years.
London remained the region with the highest number,125, largely due to the sheer number of firms in the capital. This was 5.3 per cent fewer than the previous quarter.
But Jonathan Hook, PwC’s Engineering & Construction leader, said: ‘Whilst there has been a decline in the number of insolvencies over the last quarter the industry remains under severe pricing and cash flow pressure.
‘I anticipate further failures in the supply chain over the coming period with the first half of this year being the peak point for failures in the sector.’
Manufacturing has seen 3,573 insolvencies in the same period.
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