Analysis undertaken by accountancy firm Wilkins Kennedy has revealed that UK construction industry insolvencies increased by 19% in the first quarter of 2011.
The represents the first increase in two years with 948 businesses going bust during the period, which compares with 796 companies failing in the final quarter of 2010. The new figures represent the fastest rate of construction company insolvencies for two years.
The large increase comes as firm evidence that private sector construction work has so far been unable to compensate for public spending cuts.
Anthony Cork, director of Wilkins Kennedy said: “The government has slashed capital spending on infrastructure across the board in order to plug the deficit and that has pushed the construction sector into a double dip”
“The question now is how quickly private sector construction work will be able to pick up the slack left by the public sector. So far this has not happened.”
Recipro sourced this article from The Construction Index