There have been 9,153 insolvencies in construction and manufacturing since Q1 2011 PwC figures reveal, although the two sectors did see a fall in the last quarter.
In Q4 of 2012 (October to December) there were 12% fewer insolvencies in construction than the previous quarter and it was the lowest quarter for insolvencies in the sector across the two-year period.
London remained the region with the highest number, 125, although even this was 5.3% fewer than the previous quarter. The 5,580 overall construction insolvencies for the entire period included 1,559 for general construction/civil engineering firms and 373 were plumbing firms.
Q4 for manufacturing was slightly better at 425, but this was 5.7% up on the same quarter last year. The regions most affected in the last three months of 2012 include the North East & Cumbria which suffered 23 in Q4 2012 compared to 11 the previous quarter.
Despite a better Q4 construction and manufacturing remain two of the worst affected sectors across the board to suffer from insolvencies.
Jonathan Hook, PwC’s Engineering & Construction leader, said: “Whilst there has been a decline in the number of insolvencies over the last quarter the industry remains under severe pricing and cash flow pressure. I anticipate further failures in the supply chain over the coming period with the first half of this year being the peak point for failures in the sector.”
Of the 3,573 manufacturing sector insolvencies since January 2011, 983 were industrial manufacturing firms with the rest including automotive, aerospace & defence, chemicals, metals, transport and logistics and consumer goods manufacturers.
Philip Hines, PwC Deals & Industrial Products partner, said: "The reduction in manufacturing insolvencies is encouraging but with rising raw material costs and no imminent signs of a material economic recovery, the outlook remains tough for those companies already experiencing financial stress."
Overall the total number of insolvencies in Q4 2012, across all sectors, fell 9% compared with the previous quarter, with agriculture up 28.6%, education up 13.5% and health up 25.9%. There was also an 11.5% decrease in the number of total insolvencies in Q4 2012 compared to the same period in 2011.
