Tough times ahead for UK construction industry post Brexit vote
In the first three months after the UK voted to leave the EU, the value of new construction orders dropped 18% on the previous quarter and were down 33% year-on-year. Tenders submitted fell even more dramatically; they were down 31% by number and 45% by value on the previous quarter and 62% by value year-on-year.
Businesses trading in and with the construction sector, their advisers and those lending to construction businesses need to recognise these realities. After years of suicide pricing, profit margins are worse than wafer thin and any fat in most balance sheets has long disappeared.
Recognising financial problems early, getting specialist advice and taking the tough but necessary decisions to mitigate potential losses or restore a business to better health must be a priority.