PwC reports that almost 10,000 construction businesses went into administration since the start of 2010. Under the ongoing cloud of economic and unemployment uncertainty, PwC says that 2012 could see the sector faced with the same difficulties.

Jonathan Hook, head of engineering & construction at PwC, said: 
“2011 was another tough year for the construction sector and there were 6% more insolvencies in the sector in 2011 than 2010. Over the last two years we have lost more than 5,000 companies and the trend shows no sign of abating.”

There were 656 construction insolvencies in Q4 of 2011. The UK regions that were most affected included London, West Midlands, Yorkshire region and the North West.

Hook, added: “The cuts to the Government's capital program and uncertainty around the economy and financing generally means there is little chance that 2012 will see this trend reverse. London reported a 5% decline in the number of insolvencies in the sector last year, highlighting that it is increasingly tough elsewhere in the regions, where we saw a 9% increase.”