NASC Urges Government to Protect SME Scaffolding Contractors Amid ISG Collapse

 

National Access & Scaffolding Confederation (NASC) is deeply concerned following the recent administration of ISG, the UK’s sixth largest primary construction contractor. This unprecedented development has left hundreds of subcontractors and their employees facing significant uncertainty, with many small and medium-sized enterprises (SMEs) in the scaffolding and access sector particularly vulnerable to potential insolvency.

The collapse of ISG threatens the livelihoods of countless scaffolding and access workers across the UK, who now face not only the prospect of unrecoverable debts but also the severe logistical challenges of having equipment tied up at multiple construction sites. These SMEs, which are vital to the infrastructure of the construction industry, often operate on tight margins and cannot afford to absorb such sudden and substantial financial losses.

Parallels with the Carillion crisis:

NASC is drawing direct comparisons to the 2018 Carillion bankruptcy, which had devastating ripple effects across the construction supply chain and many insolvencies. Subcontractors, especially smaller firms, were disproportionately affected by the insolvency of this major contractor. The current ISG collapse threatens to repeat this pattern, with scaffolding companies facing potential job losses, halted projects, and cash flow crises that could see many pushed to the brink of financial collapse.

Call for Government Action

NASC is calling on the Government to urgently step in and provide financial assistance and support for scaffolding and access contractors who are now left in limbo. The Confederation is urging policymakers to:

1. Establish a financial safety net for SMEs in the construction sector, including scaffolding and access firms, to safeguard them against unrecoverable debts.
2. Facilitate the swift payment of hire through the client or return / recovery of scaffolding equipment tied up at stalled construction sites, which is essential for contractors’ continued operations.
3. Ensure greater oversight of large construction companies to prevent further collapses, which jeopardise thousands of workers and small businesses.

Industry at Risk

“The collapse of ISG represents not only a financial blow to subcontractors but also a logistical nightmare for scaffolding companies who now face weeks of uncertainty over the fate of their equipment and contracts,” said Clive Dickin, CEO of NASC. “We urge Government to take immediate action to avoid a repeat of the Carillion disaster and protect the thousands of workers and small businesses who are crucial to the UK’s construction industry.”

NASC will continue to monitor the situation closely and work with industry partners and government bodies to advocate for the necessary support to shield scaffolding and access contractors from the full brunt of this collapse. NASC is issuing guidance on novation and administration to its members later today and encourages all members to access the legal and debt support services it has as part of membership by calling NASC.