Scotland business

Scottish construction bankruptcy numbers fall

House under construction Image copyright Getty Images

The number of Scottish construction companies forced out of business fell by 20% last year, according to analysis of insolvency figures.

The Scottish Building Federation said cases of compulsory liquidation fell from 727 in 2013 to 578.

There were 58% fewer bankruptcies last year than in 2009, when a total of 1,366 Scottish building firms were forced to close down.

The figures were drawn from the UK Insolvency Service.

Separate Office for National Statistics figures published in October showed a slight increase in the number of companies operating in the Scottish construction industry in 2014.

But while the number of small businesses operating in the sector rose slightly to 15,620, there were 25% fewer medium-sized companies operating in the sector than in 2009.

The number of larger Scottish construction companies - those employing more than 250 people - also dropped from 35 in 2009 to 25 in 2014.

'Welcome news'

Scottish Building Federation Managing Director Vaughan Hart said: "It is welcome news that the number of construction companies entering compulsory liquidation in 2014 fell for a third consecutive year.

"This trend is further evidence of the tentative recovery being experienced in the industry at this time.

"Contemporaneously, there are growing signs of fragmentation within the industry.

"There are still significantly fewer medium-sized and large companies operating within the sector than prior to the recession.

"Conversely, we're seeing a steady increase in the number of small businesses operating within the Scottish construction industry."

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