The Demise & Domino Effect
The demise of Carillion will not come as a surprise to many people. Over the years the UK construction industry has seen its fair share of troubles. Some have survived to fight another day but many have not, taking sub-contractors and other businesses with them when they fail.
Carillion were the second largest construction company in the UK but had crippling debt burdens which are widely reported to be of around £1.5 billion. A well-known name in the UK, people will recognise them as not only a construction company working on the likes of the Battersea Power Station redevelopment but they were also engaged in facilities management and maintenance as well as being a huge service provider to the public sector.
Carillion employed 43,000 people globally with half of those being in the UK. It expanded rapidly with operations across the world, most notably in the Middle East & Canada.
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Richard Miller is the Director & Head of TradeRisk Solutions at PIB Insurance.
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