Construction sector is facing a challenging year ahead

UNITED KINGDOM: With over 6,000 corporate insolvencies anticipated in 2023, the construction industry will face a difficult year. (Reported by news source)

Red Flag Alert's financial specialists are concerned that more than 100 construction companies will fail every week as this year's total for insolvencies in all industries will reach 32,000.

As 2023 comes to a close, Red Flag Alert estimates that there will be about £300 million in bad debt in the UK construction industry. By the beginning of 2024, this amount might rise to $1 billion.

The bad debt left behind by failing businesses is dragging down organizations who are just trying to keep their heads above water during this recession, according to financial experts.

2023 is a perfect storm for the construction industry to go bankrupt due to growing operating and borrowing costs, supply problems, and economic instability.

It is time the government provided robust support for the construction industry since the UK cannot afford to have a weak industry.