70% rise in construction firms in critical financial distress
AI Article Summary
The number of construction companies in critical financial distress has increased by 70% over the past year, according to Begbies Traynor, an insolvency specialist. In the third quarter (Q3) of the year, the number of construction firms in severe financial difficulty rose to 7,361. This statistic highlights significant challenges within the construction sector, with many firms facing potential insolvency.
What This Means for Canadian Contractors
For Canadian builders, this means keeping a close eye on financial health will be crucial as similar trends could emerge. Contractors may need to consider diversifying projects and improving financial management practices to mitigate risks. This situation also underscores the importance of effective supply chain management and cost control amid potential financial instability.
