Disclaimer: The information provided on the Timber Exchange Market Data Hub is sourced from a variety of publicly available data sources and confidential sources that have not been independently verified. Timber Exchange is not responsible for any expenses, damages, losses, or costs incurred as a result of using or relying on the information provided on this site. By using the Timber Exchange Market Data Hub, you agree to use the information at your own risk and acknowledge that any decisions made based on the information provided are done so solely at your own risk.
Rising costs and delays push UK construction companies to the brink

Rising costs and delays push UK construction companies to the brink

Posted on August 29, 2023   |  

The construction industry in the UK is experiencing a surge in business closures due to cost inflation, a slowdown in housebuilding, and government project delays.

A total of 4,280 construction operators folded their operations in a year, marking a substantial 16.5% rise in comparison to the previous year.

Buckingham Groupceased trading, citing "Extreme Inflation" Buckingham Group, a well-known contractor, halts operations and attributes challenges to unanticipated impacts, including the impact of inflation.

Smaller subcontractors bear the brunt of the crisis, accounting for 2,499 out of 4,280 insolvencies, as they struggle to navigate the supply chain challenges.

Despite a slight decline, construction material prices remain significantly elevated by 42.7% compared to pre-pandemic levels, posing challenges to project feasibility.

UK Government postponed HS2 and road projects amid Inflation concerns critical projects like HS2 face delays due to mounting inflationary pressures and rising costs, creating hurdles for the execution of infrastructure plans.



Previous Next