There have been 5,580 insolvencies in construction since Q1 2011 according to figures released by PwC , although the sector did see a fall in the last quarter.
In Q4 of 2012 (October to December) there were 12% fewer insolvencies in construction than the previous quarter and it was the lowest quarter for insolvencies in the sector across the two-year period. London remained the region with the highest number, 125, although even this was 5.3% fewer than the previous quarter. The 5,580 overall construction insolvencies for the entire period included 1,559 for general construction/civil engineering firms and 373 were plumbing firms.
Jonathan Hook, PwC’s Engineering & Construction leader, said: “Whilst there has been a decline in the number of insolvencies over the last quarter the industry remains under severe pricing and cash flow pressure. I anticipate further failures in the supply chain over the coming period with the first half of this year being the peak point for failures in the sector.”
There have been 3,573 manufacturing sector insolvencies since January 2011, 983 were industrial manufacturing firms with the rest including automotive, aerospace & defence, chemicals, metals, transport and logistics and consumer goods manufacturers.
Philip Hines, PwC Deals & Industrial Products partner, said: “The reduction in manufacturing insolvencies is encouraging but with rising raw material costs and no imminent signs of a material economic recovery, the outlook remains tough for those companies already experiencing financial stress.”
Overall the total number of insolvencies in Q4 2012, across all sectors, fell 9% compared with the previous quarter, with agriculture up 28.6%, education up 13.5% and health up 25.9%. There was also an 11.5% decrease in the number of total insolvencies in Q4 2012 compared to the same period in 2011.