“As the country wonders which big name in the construction and services industry will follow Carillion into bankruptcy, Stephen Rawlinson may have hit upon the answer — and it’s one that offers little reassurance to any of the leading players.
According to the respected independent analyst: “We are asked continually, ‘Who is the next Carillion?’ There are individual candidates, of course, but the sense we have now is that it could be the whole UK-based construction and services sector.”
That view will ring alarm bells in corporate boardrooms and public sector committee rooms nationwide, but it rings true with investors. Shares of the industry’s heavyweights, government contractors providing public services, looking after public buildings and estates and/or building them, have plummeted. The reasons why — and why recovery, if at all, has been slow — are troubling enough on their own, but added together they sum up the huge challenge facing the outsourcing industry. …”
[The article goes on to name G4S, Babcock, Mitie, Kier, Interserve, Capita and Serco]
Source: The Times, paywall