Carillion, the second-largest construction firm in the UK, were proud of their commitment to support regional growth and small-scale suppliers. As part of this commitment, they directed 60% of project expenditure to local economies. Following the collapse of the firm, this positive multiplier effect became a significant, negative multiplier effect, particularly damaging to small-scale suppliers … Continue reading “Part B: The Consequences of Carillion’s Collapse”
Tag: Carillion
Part A: The Causes of Carillion’s Collapse
Racing to secure bids over rival construction companies, Carillion, the second-largest construction firm in the UK, hit a financial tipping point, lost the backing of the banks and collapsed. Its aggressive growth strategy and the diversification of its business portfolio increased the complexity of its internal structure. Coupled with poor oversight of its day-to-day operations, … Continue reading “Part A: The Causes of Carillion’s Collapse”