Persistent inflation and high raw materials prices have pushed construction sector insolvencies up 16.5% higher than last year, prompting firms to seek ways to stall their payments.
In the 12 months to June 2023, 4,280 construction companies in the UK went out of business 16.5% more than the previous year, according to the governments Insolvency Service due to a combination of inflationary macroeconomic conditions, high raw materials prices, thin margins and short payment terms.
Most recently, major contractor the Buckingham Group which had an annual turnover of 680m declared insolvency, citing rapidly escalating contract losses and a sharp reduction in liquidity.
Procurement software platform YardLink CEO, Neeral Shah, told Supply M…
Read the full article at: https://www.cips.org/supply-management/news/2023/august/construction-buyers-stall-payments-as-insolvencies-accelerate/