Glenigan Breaks Down ISG Collapse Impact on Industry

THE SUDDEN collapse of ISG sent shockwaves through the UK construction sector, leaving many projects in limbo. To help the market navigate the situation, Glenigan has published detailed information on all impacted projects.

Sector Impact

According to Glenigan’s construction industry data, public sector work accounts for a third of ISG’s pipeline, while industrial, commercial, and private housing projects on ISG’s books total over £2.8 billion.

Some of the biggest projects at risk in the UK include:

Overall ISG currently has projects totalling over £2.5 billion on site and was awarded contracts on a further £1.7 billion of work.

33 awarded contracts, 57 projects in progress on site, and three imminent completion, have been left up in the air.

ISG was also on 19 Construction Frameworks with a combined value of over £104 billion.

Regional Impact

Further analysis of ISG’s projects across the country highlights the impact of its collapse on businesses nationwide. London’s supply chain is most affected with 24 projects halted, worth £1.863 billion, including two data centres worth over £150 million each.

A map collated by Glenigan (below) shows both the scale of the disruption caused by ISG’s collapse and the commercial opportunities for agile suppliers to step in and ensure that these projects are completed.

Glenigan says, “This situation presents a major problem for both contractors and subcontractors, many of which will be left seriously out of pocket, putting a large number of jobs on the line.

“However, there is a commercial opportunity for agile suppliers to step into the breach, ensuring many of these projects do not fall behind and involved subcontractors are supported.”

>> Read more about the ISG collapse in the news