It is interesting to see reports out today that levels of credit insurance to the construction industry had fallen by an estimated 40% to £15 billion in the last 12 months.
Why is this important? Well, without this insurance in place, more and more pressure will grow on the industry supply chain, with demands for upfront payments rising placing further stress on an already challenged industry. Add into the mix clients slowing down payment times, paranoid banks and less work – and you have a potentially lethal cocktail.
Isn’t it time that the UK Government – which is keen to pump prime the economy through increased infrastructure spending – stepped in as the French have done and create a state insurer to ease the stress on the system.
If we are not careful, the very companies that are needed to stimulate a recessive economy, won’t have the wherewithal to do it!
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