Although the industry is known for firms going under, the wider picture shows the problem is less severe, writes Barrett Harris.
When examining the insolvency rate, which measures insolvencies relative to the total number of companies, construction ranks third with an insolvency rate of 1.3%, behind accommodation (2.6%) and manufacturing (1.7%). This suggests that, proportionally, insolvencies in construction are not as severe as initially perceived.
While insolvency statistics provide valuable insights, they only represent about 10% of the businesses leaving the industry. The Office for National Statistics (ONS) tracks business ‘deaths’, which encompass all types of dissolutions, including…
