Over 5,000 Construction Firms Collapse In Two Years

Nearly 10,000 construction and manufacturing businesses went into administration since the start of 2010, PwC figures reveal.

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

Under the ongoing cloud of economic and unemployment uncertainty, PwC experts say that 2012 could see the sectors faced with the same woes.


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."

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

Mr Hook continued: "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."

(CD/GK)