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UK loses nearly 10,000 construction & manufacturing businesses in two years

Over 5,000 construction firms gone into administration since 2010, according to a new report by accountants PwC.

Along with this, the recession has claimed over 4,000 manufacturing firms go under in the same period

A breakdown of corporate insolvencies for these two sectors also show London alone suffered 927 insolvencies since the start of 2010.

PwC experts say that 2012 could see the sectors facing similar difficulties.

Jonathan Hook, head of engineering & construction at PwC said : “2011 was another tough year for the construction sector and there were 6% more insolvencies in the sector in 2011 than 2010. Over the last two years we have lost more than 5,000 companies and the trend shows no sign of abating.”

There were 656 construction insolvencies in Q4 of 2011 and 424 for manufacturing.

The UK regions that were most affected included London, West Midlands, Yorkshire region and the North West for both sectors.

Hook said : “The cuts to the Government’s capital programme and uncertainty around the economy and financing generally means there is little chance that 2012 will see this trend reverse. London reported a 5% decline in the number of insolvencies in the sector last year, highlighting that it is increasingly tough elsewhere in the regions, where we saw a 9% increase.”

About Fiona Russell-Horne

Fiona Russell-Horne
Editor-in-Chief across the BMJ portfolio.

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