Economic Recovery having positive effect on Construction Companies
Now that the economic situation in the UK is beginning to improve, construction companies are already seeing the benefits. Many businesses were being forced into insolvency but now the numbers have begun to drop. In the third quarter of last year 16% which is more than any other business sector. However this number is 18% lower than the previous quarter and 29% less than it was during the same time period last year.
It is not all good news however, as the Government’s plans to make heavy cuts on the public sector which will have major effects on many businesses. The construction industry will as suffer as a high proportion of contracts come from this area of business.
Improvements in property development have also fallen rapidly but it has been reported that this is due to support from banks and investors rather than the upswing of the real estate industry. Property values have not increased but actually declined, particularly in the case of secondary properties.