A record number of insolvencies are expected this year in the construction industry. Accountancy firm BDO Stoy Hayward predicts that the industry is facing its toughest time for ten years.

Last year 2632 construction companies went under, which was a marked rise on previous years and a 50% increase on 1998. The firm predicts that insolvencies will continue to rise to 2766 this year and 2854 next year. "Companies need to take stock of their assets and watch their cash flow carefully," warns partner Stephen Herring. "We are not out of the woods yet as over the next few years the construction industry will perhaps face its most challenging conditions in a decade."

Source

Electrical and Mechanical Contractor