The number of construction firms experiencing distress fell by 26% between the first quarter and the second quarter of 2010
Figures released by Begbies Traynor, a financial consultancy, show that the number of construction firms experiencing “significant” or “critical” financial problems was 17,033 in the second quarter of 2010.
The figure was 26% lower than the 22,990 suffering similar problems in the first quarter of 2010, and 17% lower than in the second quarter of 2009.
However, Nick Hood, a partner in Begbies Traynor, warned of worse times to come. “The UK could develop a twin track economy, with public sector-dependent industries such as construction facing higher levels of financial distress. Builders, which traditionally account for 20% of UK insolvencies, are likely to be hardest hit of all.”