Construction companies failing

[GuinnessMK]

I've worked in construction for the last 20 years, and have seen booms and slumps in demand. However in the last two weeks I've had three main contractors I've used go under. All of them appeared to have pretty strong order books. I've seen companies go pop in recessions, but rarely in the middle of a boom.

Trouble is they've all then left some of their subbies unpaid, and they have gone under, or are now struggling for cash flow or to pay wholesalers.

I know retail and catering can be pretty volatile, and you hear of the odd rogue trader who goes bust and reopens in most sectors, but (IMHO) I never hear of so many failures in other sectors.

My question is, is the construction industry the exception or the rule when compared to other business sectors?

[GuinnessMK]

That's all pretty much in alignment with my understanding, but what I was hoping was to see if the construction industry was unique or if it was happening in other industries in a similar manner as the recession changes.

From my own point of view, I don't think we've seen the end of things yet, with the Tier 1 contractors either making losses or very slim margins, and the likes of Tesco / Sainsbury's cutting back on developments.

http://www.constructionenquirer.com/2015/07/03/tra...

Edited by GuinnessMK on Saturday 4th July 13:51