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Speaker 1: Heller due to see Allen nearly one third of all

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Speaker 1: business liquidations and construction companies at the moment. Now. That's

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Speaker 1: up from twenty twenty two, when the number was just

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Speaker 1: one quarter. This is according to a new report from

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Speaker 1: the Building re Research Association out today. Julian Laser is

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Speaker 1: the chief executive of the Building Industry Federation. Hey Julian, Hey, Heather,

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Speaker 1: what's going wrong?

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Speaker 2: All? It's tough and this is a reflection of how

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Speaker 2: hard the last couple of months has been. But on

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Speaker 2: the plus side, I think things are leveling out. So

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Speaker 2: you know, we still have a good number of building

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Speaker 2: consents sitting around thirty three thirty four thousand. We still

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Speaker 2: are seeing active work worth construction and subtrades. But the

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Speaker 2: insolvency pressure, you know, is there, and the key challenges

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Speaker 2: always is getting paid on time because it's all about

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Speaker 2: cash flow.

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Speaker 1: How much of this has got to do with the

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Speaker 1: fact that in some cases building companies are poorly run

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Speaker 1: tech they're quoting far too low just to win the

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Speaker 1: the job in the first place.

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Speaker 2: Well, IOK, that is certainly part of it, and we

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Speaker 2: shouldn't forget. You know, there's three hundred thousand people that

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Speaker 2: work in the building and construction sector. Thousands of businesses,

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Speaker 2: many of them small, not all of them, you know,

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Speaker 2: have the skills to manage cash flow and to have

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Speaker 2: cash cash reserves, and so you know, those companies are

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Speaker 2: some of the ones I suspect that are getting into trouble.

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Speaker 2: So yeah, financial management is definitely, you know, a key

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Speaker 2: part of this.

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Speaker 1: Deilian, you think we've reached the bottom, Is it upwards

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Speaker 1: from here?

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Speaker 2: I would think so, because from what we're seeing with

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Speaker 2: sales going through the merchants, through the manufacturers, things are

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Speaker 2: concrete and steel they are saying to pick up, which

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Speaker 2: means that there is activity there. I think people are

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Speaker 2: now getting a bit bolder in terms of making decisions

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Speaker 2: to crack on with projects, and we must we shouldn't forget.

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Speaker 2: Rather that that takes time, you know, from the time

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Speaker 2: of decision it's made. So I think come spring, you know,

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Speaker 2: once we get through winter, which is always slow anyway,

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Speaker 2: we'll start to see a bit more activity.

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Speaker 1: Good and please you hear it, Julian, Thanks so much.

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Speaker 1: Julian lais Chief executive Building Industry Federation. For more from

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Speaker 1: Hither Duplessy Alan Drive, listen live to news talks it'd

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