The construction sector has had a hard year, with the combined horror of Carillion, bad weather and the departure of EU workers. With the Brexit deadline approaching fast, the sector really needed some good news. Unfortunately, life isn’t fair for modern business and instead, insolvencies have increased. This could illustrate that despite the time that has passed, the sector really has not learnt from its mistakes.
Carillion was devastating and highlighted the cracks in the sector’s make up. It is time that contractors and high-profile firms realise they’re not invincible and defend themselves accordingly.
According to new analysis by accountancy firm Moore Stephens, there were 2,764 insolvency casualties among building firms in the 2017-18 financial year. This is up by 6 per cent on the previous 12 months and demonstrates the trouble the sector is in.
The instigator of all trouble has always been Carillion. The construction giant collapsed back in January after it racked up debts of about £1 billion. The ensuing chaos left small businesses in dire straits, with vulnerabilities of the supply chain left exposed. Ministers were consequently blamed for the crisis, with their lack of foresight heavily criticised.