[UK] Construction industry tops insolvency list

The UK construction industry recorded the highest number of insolvencies across all sectors in the 12 months leading up to March 2023, ScaffMag reports.

According to recent data from the Insolvency Service, a total of 4,165 insolvencies were lodged in the first three months of 2023 alone. These accounted for nearly one-fifth (19 per cent) of all cases in industries with captured data.

Also featuring high on the list were the wholesale and retail trade and repair of vehicles (3,518 insolvencies, 16 per cent of cases) and accommodation and food services (2,951 insolvencies, 13 per cent of cases). 

The findings reportedly continue the trend of construction having the highest quarterly number of insolvencies among all industrial sectors.

The construction sector had an 18 per cent increase compared to the same first-quarter period in 2022, in terms of overall company insolvencies. 

Company insolvency statistics for England and Wales - together with figures for Scotland and Northern Ireland - reportedly show a 4 per cent decrease in total company insolvencies in Q1 2023 compared to Q4 2022. England and Wales registered a total of 5,747 company insolvencies in Q1 2023, after seasonal adjustments.

Scotland saw a significant increase in company insolvencies. 297 cases were reported in Q1 2023; a 41 per cent increase compared to the same quarter in 2022. By contrast, Northern Ireland reportedly had a decrease of 29 per cent with 40 company insolvencies in Q1 2023 compared to Q1 2022.

Over the 12 months ending Q1 2023, one in every 197 companies faced liquidation; a higher ratio than those recorded in the 12-month periods ending Q4 2022 and Q1 2022.

Source: ScaffMag

The UK construction industry recorded the highest number of insolvencies across all sectors in the 12 months leading up to March 2023, ScaffMag reports.

According to recent data from the Insolvency Service, a total of 4,165 insolvencies were lodged in the first three months of 2023 alone. These accounted for nearly one-fifth (19 per cent) of all cases in industries with captured data.

Also featuring high on the list were the wholesale and retail trade and repair of vehicles (3,518 insolvencies, 16 per cent of cases) and accommodation and food services (2,951 insolvencies, 13 per cent of cases). 

The findings reportedly continue the trend of construction having the highest quarterly number of insolvencies among all industrial sectors.

The construction sector had an 18 per cent increase compared to the same first-quarter period in 2022, in terms of overall company insolvencies. 

Company insolvency statistics for England and Wales - together with figures for Scotland and Northern Ireland - reportedly show a 4 per cent decrease in total company insolvencies in Q1 2023 compared to Q4 2022. England and Wales registered a total of 5,747 company insolvencies in Q1 2023, after seasonal adjustments.

Scotland saw a significant increase in company insolvencies. 297 cases were reported in Q1 2023; a 41 per cent increase compared to the same quarter in 2022. By contrast, Northern Ireland reportedly had a decrease of 29 per cent with 40 company insolvencies in Q1 2023 compared to Q1 2022.

Over the 12 months ending Q1 2023, one in every 197 companies faced liquidation; a higher ratio than those recorded in the 12-month periods ending Q4 2022 and Q1 2022.

Source: ScaffMag