The latest construction insolvency figures out today show that 911 construction companies went out of business in the last registered quarterly figures.
The latest figures mean that 12,710 construction and engineering companies have gone out of business in the last three years.
During this current recession the construction industry has seen a huge number of insolvencies: In 2009 the industry experienced its highest level losing 4,503 companies, whilst 2010 saw this figure drop to 3,589 only to rise again last year to 3,707.
In the first quarter of 2012 there has been a slight decrease of 2.5% in the number of construction insolvencies compared to the last quarter of 2011. It has been a positive, if slight, downward trend with the numbers decreasing slightly over the last two quarters, but still the figures look bleak, especially set against a backdrop of negative growth in the construction industry, with more than 900 construction and property companies going out of business most quarters.
Figures from the recessions 1980s and the 1990s suggest that insolvencies continue to rise after a recession officially ends, culminating in an eventual high some time afterwards.
Construction risk management firm CR Management director Alan Harris said businesses needed to take steps to avoid collapse.
“The good news is that there have been remarkably few disputes in this recession,” he said. “Good business practices and bringing in outside experts for additional support as soon as you need them, have been cornerstones for the companies that continue not only to survive but thrive in construction.”