{"id":155382,"date":"2025-09-22T10:37:51","date_gmt":"2025-09-22T09:37:51","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=155382"},"modified":"2025-09-22T11:36:49","modified_gmt":"2025-09-22T10:36:49","slug":"latest-uk-construction-company-insolvency-stats-revealed","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/latest-uk-construction-company-insolvency-stats-revealed\/155382\/","title":{"rendered":"Latest UK construction company insolvency stats revealed"},"content":{"rendered":"

Insolvency rates among construction companies continued to climb in July<\/h2>\n

UK construction company insolvencies made up 15.2% of all insolvencies in both England and Wales in July, a 2.5% increase from June.<\/p>\n

However, this is also a drop of 3.5% year-on-year from July 2024.<\/p>\n

Nearly 4,000 companies went under in a year<\/h3>\n

In the 12 months to July 2025, 3,973 construction companies entered insolvency. While is a decrease of 9.5% yearly from July 2024\u2019s 4,389, it is an increase of 23.5% on 2019\u2019s 3,218.<\/p>\n

Monthly, specialist firms took the biggest hit with 195 recorded insolvencies.<\/p>\n

While the numbers may seem bleak, it should be noted that the number of companies on the effective register is more than twice what it was during the 2008 recession, which saw the highest peak of insolvencies.<\/p>\n

This means that, while insolvency rates are high for construction, there are more construction companies to make up the difference.<\/p>\n

Analysis by EY Parthenon<\/a> notes that there are many factors to consider both within and outside the UK, writing: \u201cUnpredictable tariff policy, rising employment costs and shifting regulatory frameworks are reshaping corporate behaviour. As the second half of the year begins, sectors exposed to discretionary spending and policy-sensitive industries like healthcare, retail and energy also face mounting pressure.<\/p>\n

\u201cWhen everything feels like a risk, it becomes harder to know which threats matter most. Companies can\u2019t react to every event, but the speed of change means that a \u2018wait and see\u2019 approach isn\u2019t an effective long-term strategy either. Businesses need a measured, scenario-based approach that balances agility with strategic clarity to face ongoing uncertainty.\u201d<\/p>\n

Construction is third highest for administrations<\/h3>\n

Analysis by Shakespeare Martineau in July<\/a> showed that, to July, 10% of all administrations in the UK were construction companies, making it the third worst-hit sector.<\/p>\n

This marked a 11% decline year-on-year, but a 3% rise from 2023, showing a somewhat worse market condition.<\/p>\n

Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: \u201c\u201cThe North West becoming the worst-hit region is a significant shift. This suggests that distress is becoming more geographically widespread, no longer concentrated in Greater London and the South East. Local economic factors \u2013 including legacy pandemic debt, delayed investment and supply chain costs \u2013 continue to weigh heavily.<\/p>\n

\u201cThese figures, while worthy of note, do not detract from the fact that the trading environment for many businesses remains highly challenging. Many companies are surviving through short-term fixes, but without sustained growth, improved consumer confidence and better access to funding, there are still choppy waters to navigate.\u201d<\/p>\n

You can read more on major companies falling into administration in 2025 here.<\/a><\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

The Insolvency Service’s UK construction company insolvency stats show that rates are still high for the sector.<\/p>\n","protected":false},"author":32,"featured_media":155384,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[285],"tags":[20347,908],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-155382","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-hr-skills-news","8":"tag-administration","9":"tag-economy"},"acf":[],"yoast_head":"\nLatest UK construction company insolvency stats revealed<\/title>\n<meta name=\"description\" content=\"The Insolvency Service's latest stats show that UK construction company insolvency rates are still high and 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