Member News

Construction decline leads to further job losses

The current downturn in the construction industry is taking its toll on long-standing mechanical and electrical firms in the East of England.

PKF Accountants & Business advisers has been appointed as administrators for two well-established firms in the past two months alone.

Ipswich-based Warners M&E Ltd has just gone into administration, making 56 staff redundant; 11 employees have been taken on by parent company Haymills. A further 22 employees at the firm, which has been in business since 1845, are helping the administrators.

Just a month previously, Brightlingsea electrical company Ruddocks, established for 82 years, announced the loss of 35 jobs.

PKF East Anglia has also been dealing with the insolvencies of a number of small-scale developers who have been unable to sell their stocks of residential and commercial property.

PKF insolvency expert David Merrygold said: "Unfortunately this is a sign of the times and we are expecting it to worsen in the short-term. If people aren't buying property, developers will have to cut back on costs and this will have serious consequences for suppliers."

Ironically, the region is expected to boom again with construction needed for the 2012 Olympics and Thames Gateway development.

Mr Merrygold advised: "If businesses of any kind are experiencing financial problems, we would urge them to contact their accountants and professional advisers immediately. There are many things we can do to help stave off insolvency and keep businesses afloat."

Article by BDO LLP

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