In response to the collapse of ISG, the Construction Leadership Council (CLC) has called for urgent action to mitigate potential damage to the supply chain.
- The CLC held an emergency meeting with the Department for Business and Trade, discussing industry-wide strategies to handle ISG’s administration.
- Prompt payment to suppliers is strongly encouraged to minimise financial distress and potential insolvencies resulting from ISG’s failure.
- The CLC is preparing detailed guidance for the industry, urging firms facing severe financial difficulties to contact their industry bodies.
- Trade body Build UK is actively working to secure roles for ISG’s apprentices and graduates impacted by the collapse.
The Construction Leadership Council emphasized the necessity for immediate and decisive action in light of ISG’s collapse, a significant event with potential repercussions across the construction sector. The council, in collaboration with the Department for Business and Trade, led discussions on essential industry responses to this crisis. This move signifies the serious approach being taken to address an issue that could destabilise supply chains.
Payments to suppliers have been underscored as a critical measure to stave off further financial instability. The CLC called on all industry players to ensure that suppliers receive prompt payments to prevent a ripple effect of financial distress akin to previous major industry collapses.
Detailing a strategic response, the CLC is currently developing comprehensive guidance for firms affected by ISG’s unexpected administration. It highlighted the importance of firms adhering to existing contractual agreements and recommended those experiencing acute financial distress reach out directly to their respective industry bodies for support.
In parallel, Build UK has launched efforts to mitigate educational and professional losses by facilitating new placements for apprentices and graduates formerly with ISG. Build UK’s chief executive, Suzannah Nicol, stressed the importance of finding roles for those starting their careers, encouraging businesses to assist where possible.
The echoes of past financial turmoil resonate as ISG’s collapse risks mirroring the impact of the Carillion failure, which left thousands of small businesses financially crippled. Currently, the construction industry remains heavily affected by insolvencies, exacerbated by pandemic aftershocks and inflationary pressures, further challenging the resilience of firms nationwide.
The industry collectively seeks to minimise the impact of ISG’s collapse through collaborative action and strategic financial measures.
