A significant number of firms have been living beyond their means, new figures show
Almost half of construction companies have seen their turnover drop in recent weeks due to covid-19, according to new figures released by the Office for National Statistics today.
The data, based on a survey of 464 firms earlier this month, shows that 46% of firms suffered a reduction in their turnover between 27 July and 9 August. Just 9% saw their turnover increase.
More than one in 10, or 12% of companies have been effectively operating at a loss during this period, with their operating costs higher than their turnover.
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The firms surveyed range from civil engineering companies to housebuilding and property development businesses, as well as construction trades such as plumbers, electricians and plasterers.
Around 9% of workers in construction remain on furlough, while 63% are back at their usual workplace and a further 23% are working remotely.
A significant proportion of firms, 9%, warn they are at moderate risk of insolvency, with a further 52% regard themselves at low risk. Only 28% see themselves as not being at risk of insolvency.
More than half (52%) of companies admit that their cash reserves would last less than six months. In comp