Construction Industry Update

As the newsroom reported last week and as any Match of the Day viewer will have noticed, Liverpool’s planned expansion of Anfield has actually seen the capacity fall, given the delays to the build and the notice of intention filed by Buckingham Group.

With Billy off on his job interview at Aldi (don’t tell Neil), the rest of the newsroom is here to bring you the latest construction insolvency news. I’m afraid if you are a fan, you might want to copy any viewer of the BBC News pre-Match of the Day and “look away now”. 

The statistics for the 12 months to 31 March 2023 showed 4,165 firms entered into an insolvency event, which represents 17% of all insolvencies across the period and the highest rate in a decade. Alternatively, it was 4,280 firms for the 12 months to the end of June, a rise of 16.5% on the prior 12 months.

A slowdown in house building and delays to government infrastructure projects (see HS2 for example, another Buckingham Group project) are being blamed as the major causes for the struggles in the construction sector. The £9bn Lower Thames Crossing east of the Dartford Bridge, which as any road user trying to get from Kent to anywhere else will tell you is desperately needed, has also been delayed by two years.

The Office for National Statistics told us that although they have fallen from their highs post Russia’s invasion of Ukraine, construction costs are still a 'hit your thumb with a hammer' eye-watering 42.7% higher than pre-pandemic. Some materials, such as bitumen and precast concrete, are still rising with inflation for these products at 12%.

The construction industry is also warning of supply-chain domino insolvencies, with supply chain losses in the Tolent Administration back in February being £43m alone. Given this is an industry where components are manufactured on a just-in-time basis, the challenges do seem to stretch into the distance like the wait for an HS2 train.

Place your bets now for a JIEB question involving a construction company…