Expert analysis shows, that over past years ,there is 22% increase in construction companies in significant financial distress.
Begbies Traynor ,Accountants from insolvency specialist said in its Q2 2017 report;
“Increase in construction companies provided evidence of a slowdown in the UK housing and construction markets”
According to statistic report provided by Begbies Traynor, By the end of June of 2017, 40,495 construction companies are operating in a state of 'significant' financial distress. While in 2016 there were only 33,222 operating construction companies.”
Begbies Traynor also said that over the past year, the property sector has a downfall as the report indicates, with 28,259 real estate businesses in 'significant' financial distress, up 32% from increase provided further evidence of a slowdown in the UK housing and construction markets 21,373 this time last year.
Julie Palmer, partner at Begbies Traynor,said;
“As the whole UK economy is experiencing a downfall but the most pronounced deterioration is experienced by property and construction sector. This whole scenario creates doubts and left many questions in mind, like, whether they have strong enough foundations to cope with upcoming headwinds, from Brexit?. Are they able to bear the rising cost of imported goods to the widening skills gap and its impact on labour cost inflation?.”
Construction Workers are £4000 worse off since the 2007 recession https://t.co/4vkV6ZlaLR— Construction Jobs (@Construct_job) August 9, 2017