Over a third of firms down to under 3 months cash

Aaron Morby 4 years ago
Share

Around 35% of construction firms are reporting less than three months’ cash reserves after the pandemic lockdown.

The big squeeze on cash was revealed in the latest industry survey taken by number crunchers at the ONS.

Around one in 20 of these firms (5.2%) reported they were walking a tightrope with less than one month’s cash.

The Business Impact of Coronavirus Survey received responses from just over 1,700 construction firms, with around a fifth employing more than 250 staff. It was taken in the first two weeks of May.

At that time, around 20% of firms surveyed had temporarily stopped trading altogether, with an average of around 42% of staff on furlough.

In that period, four out of 10 firms saw revenue more than halved.

Since then more staff have returned to work as sites reopen.

But there are concerns that many firms may be forced to downsize.

Noble Francis, chief economist at the Construction Products Association, said: “Clearly the proportion of staff on furlough will fall as sites reopen but what we don’t know is what happens after the initial flurry of activity to complete halted projects, given the fall in demand and new orders since COVID-19.”

Last month Wates became the first national contractor to unveil redundancy plans in response to the coronavirus epidemic.

The firm, which had previously furloughed a third of staff, said it had to act to lay off 300 staff to protect the business in the face of falling revenue.

Its planned downsize will cut the workforce by around 8%.  The cuts will be across the board hitting surveyors, planners and bid teams.

Latest news

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
2 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
2 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
2 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
2 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
2 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
2 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
2 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
2 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
3 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
3 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
3 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
4 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
3 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
3 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
4 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
4 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
4 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
4 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
4 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
5 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
5 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
5 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
5 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
6 days ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
5 days ago

Barhale lands £21m shaft scheme for Thames Water

Civils specialist bags latest upgrade deal on Thames Water Ring Main
5 days ago

Caddick names new north east director

Former Laing O'Rourke project lead joins Yorkshire contractor
5 days ago

Mount Anvil wins London Camden estate rebuild

Deverloper wins £133m Bacton Phase 2 development in Gospel Oak
6 days ago

London Met Uni seeks firm for £280m estate upgrade

A single partner contractor will deliver 10-year building upgrade plan
6 days ago

Top 30 M&E contractors set for growth – ranking

Growth in data centres and commercial refits creates optimism for year ahead
6 days ago

Contractor services