1 in 20 firms have less than a months’ cash
Figures from the Office of National Statistics (ONS) show that over a third (35 per cent) of construction firms have less that three months’ cash reserves left. Around on in 20 (5 per cent) said they have less than one months’ cash remaining.
The Business Impact of Coronavirus Survey received responses from just over 1,700 construction firms, with around a fifth employing more than 250 staff. It was taken in the first two weeks of May.
The figures also showed that over 80 per cent of construction businesses furloughed staff in May.
Noble Francis, chief economist at the Construction Products Association, said: “Clearly the proportion of staff on furlough will fall as sites reopen but what we don’t know is what happens after the initial flurry of activity to complete halted projects, given the fall in demand and new orders since COVID-19.”