The construction sector has seen its steepest decline in regards to the number of people employed since 2010. Employment dropped by 83,000 in the second quarter of the year, from the start of April to the end of June, according to data from the Office for National Statistics (ONS).
Hundreds of planned cuts
The drop over this period left the total employment level for the sector at 2.24 million, and major contractors such as Laing O’Rourke, Mace and Wates have also announced planned cuts to jobs over the last few weeks.
Unfortunately, it seems as though the smaller firms that are more dependent on cashflow have suffered, and will continue to suffer, the most in terms of job cuts.
Any rebound could be short-lived
Although activity in the sector has picked up, with construction sites getting back up towards the end of Q2, any rebound may not last for long. With furlough schemes set to end in October, struggling firms could suddenly start another huge jump in job cuts.
If there isn’t a jump in the demand for new projects after the furloughing scheme ends, many firms that are teetering on the brink due to financial concerns may not be able to recover. Thousands more jobs could be at risk, especially for SMEs.
Our construction sector specialists can help
Many businesses in the construction sector are having severe financial problems. The team here at Clarke Bell have over 26 years’ experience helping companies to deal with the business debts and cashflow difficulties.
Our Licensed Insolvency Practitioners and insolvency team fully understand the problems faced by companies in the construction sector, and how things have been exacerbated during the pandemic. We can help your company deal with its problems. If insolvency is required, we can also help you deal with it legally and affordably.
We offer a number of services that can help firms who are suffering – including a Creditors’ Voluntary Liquidation (CVL). Our friendly team can guide you through every step of this process, and our fee for a CVL is from just £1,995 +VAT, +disbursements.
Whatever option is right for you, it’s important that you don’t delay in getting the professional, experienced advice you need.
Get in touch with us on [email protected] or 0161 907 4044.