Despite recent reports that construction in the Midlands, specifically the East Midlands, has been struggling in recent months, recent research has demonstrated that Specialist Contractors in the area are actually at the least risk of insolvency in the UK. An insolvency trade body named R3 surveyed twelve areas throughout the UK to check for risk of insolvency amongst contractors and found that the East and West Midlands were the most stable of the lot.By making use of Bureau Van Dijk’s Fame database, the organisation found that the East Midlands has the lowest proportion of construction companies at a higher than normal risk of insolvency, clocking in at 25.9%, with the West Midlands standing at slightly higher risk, clocking in at 26%. This compares very favourably with the national average, which is currently 27.6%.Similar figures were also found for the manufacturing sector in the areas, where the two Midlands regions are performing better than the majority in terms of risk of insolvency.Speaking about the results, Chris Radford, who is the R3 Midlands Chairman, commented: “It is encouraging to see that, despite initial deep concerns post-EU Referendum, confidence is starting to return to the local manufacturing and construction sectors.“Without doubt, there are now fresh opportunities to be seized, but while new trade links are established and current ones built on, the importance of sound strategic planning should never be overlooked.“It is also crucial for all business owners to monitor finances carefully. If cash flow becomes a major issue, professional advice should be sought before it is too late.”
This is particularly encouraging news in the wake of recent reports that East Midlands construction is suffering from a skills shortage and those in the region should be buoyed by the fact that their work is allowing them to weather the storm of Brexit and continue to provide quality services to Construction Professionals.
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Paul was a Quantity Surveyor who gained 10 years experience of managing £200 million worth of flagship UK projects, including 20 Fenchurch Street and Battersea Power Station. In 2015, Paul founded C-Link with the intention of sharing his expertise of managing major projects with the SME market.
