Industry one of the worst sectors affected by companies going under
Construction is one of the sectors which has seen administrations jump this year, new data from financial advisory firm Kroll has revealed.
The company said there had been 955 administrations across all sectors in the first nine months of the year with 127 of those coming from construction.
Other sectors badly hit include manufacturing with 111 while food and drink saw 73 administrations in the third quarter alone.
Kroll managing director Sarah Rayment said: 鈥淚t is unsurprising that construction and manufacturing continue to lead the way with their traditionally low margins leaving little breathing space.鈥�
Kroll said rising administrations in construction meant overall numbers for the first nine months of the year were 28% higher than compared to last year, with the average monthly number of firms across all industries going under standing at 106. This rate would mean nearly 1,300 firms will collapse this year.
>>>See also: 鈥業t鈥檚 devastating.鈥� Boss of collapsed M&E firm Lonsdale speaks about administration
And Rayment warned more pain was on the way: 鈥淲e are yet to see the peak of company administrations and are likely to see a steady increase as the year progresses.
鈥淭he cost of borrowing and the lack of access to working capital coupled with difficulties in passing on increased supplier and material costs will undoubtedly continue to leave companies incredibly vulnerable.鈥�
High-profile administrations in construction in the past few months have included 拢700m turnover firm Buckingham and 拢250m turnover London M&E specialist MJ Lonsdale.
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