PwC data reveals decrease in firms going bust but industry could still be vulnerable
The construction industry saw a 14% decrease in the number of collapsed firms in 2010, according to research by PwC.
The research shows 2,527 firms became insolvent last year, down from 2,948 in 2009. But PwC warned the industry would still be vulnerable in 2011.
The overall number of construction insolvencies last year was still 15% above those experienced in the industry in 2008.
Jonathan Hook, construction leader at PwC, said: “The next 18 months are likely to be tough for UK construction as the private sector is not yet recovering sufficiently to fill the gap left by public sector cuts.
“I believe there will be more insolvencies in the sector as companies experience the cash outflow impact associated with a decline in long term contracting volumes.”