Insolvencies rise 33% in 2009

PwC revealed that 696 firms entered insolvency in the fourth quarter of last year, bringing the total for 2009 to 2,932. This figure is a 33% rise from 2008 (2,204), and more than double the number recorded in 2005 (1,422) (see attached graph).

According to PwC the construction industry accounted for 15% of total insolvencies across all sectors in 2009, with recent high-profile casualties including William Verry Construction, which sunk last summer, and Stockport’s Multibuild, which is in talks with Balfour Beatty.

Jonathan Hook, construction leader at PwC, said: “While the economic stimulus packages have had some benefit, particularly in the public repairs and maintenance sector, it is clear that tough times for construction industry are not over yet.”