Construction firm liquidations on the increase
Construction firms are continuing to be hit hard by the recession, with a sharp increase in companies going bust.
New figures from the Insolvency Service show that 241 construction companies in England and Wales were forced into compulsory liquidation in the first quarter of 2012 – the latest period in which full industry-by-industry data is available.
This represented a 12 per cent increase on the number forced into liquidation in the previous quarter and a massive 23 per cent more than the 196 that went bust in the same period in 2011.
The construction industry bucked the overall trend which saw forced liquidations across all sectors fall by 13 per cent from the last three months of 2011 to the first three months of this year.
Construction is now responsible for almost one in five of all businesses forced into liquidation.
There have now been 4,262 construction companies forced into liquidation since the beginning of 2008. However, the latest figures represent an improvement on 2009, when the first quarter saw 343 firms go bust.