With supply chain issues causing shortages of raw materials and key components, the construction sector is experiencing a challenging time as the costs of raw materials, transportation and energy have all increased significantly. Delays at manufacturers, ports and on Britain’s roads have meant disruptions in the supply of imported products that are essential for construction projects. Gallagher commissioned research amongst 1000 business leaders across the UK which showed that 80% of building and construction companies have experienced supply chain issues in the last 12 months.1
It is anticipated that unpaid construction invoices will reach £1.5 billion in 20212, and both construction contractors and companies will continue to experience significant financial distress as we head into 2022. The construction sector remains the most significant contributor to insolvency numbers in the UK and Northern Ireland - out of 1,971 insolvencies in October 2021, 328 were construction companies.3
Unfortunately we are likely to see more business failures in the coming months, along with the subsequent non-payment of upcoming invoices. Trade credit insurance helps protects your construction business against customers failing to pay for goods or services provided to them on a credit basis, often due to insolvency.
Given the challenging environment within the construction sector, trade credit insurance can help provide confidence, knowing your business has protection in the event of payment default by a customer. It can help you grow your company, safe in the knowledge that if a key customer becomes insolvent, you would be protected from the ‘domino effect’ which can cause other business to fail.
Gallagher is one of the largest trade credit insurance brokers in the UK, with a specialist team working across six regional locations. With our in-depth knowledge of the construction sector, we are well positioned to design a trade credit solution for your business.
Get in touch with one of our specialists today to discover more about the benefits of trade credit insurance.
- Data taken from research conducted by Opinium on behalf of Gallagher, between 9-16 September 2021, among 1,000 senior decision-makers in UK businesses.