{"id":538379,"date":"2026-02-17T12:16:45","date_gmt":"2026-02-17T12:16:45","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=538379"},"modified":"2026-02-17T12:16:45","modified_gmt":"2026-02-17T12:16:45","slug":"construction-is-worst-sector-for-insolvencies-four-years-running","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/administrations\/construction-is-worst-sector-for-insolvencies-four-years-running-17-02-2026\/","title":{"rendered":"Construction is worst sector for insolvencies four years running"},"content":{"rendered":"

More construction firms collapsed in 2025 than in any other sector, Insolvency Service (IS) figures show.<\/span><\/p>\n

Almost 4,000 (3,931) became insolvent last year, accounting for 17 per cent of all cases.<\/span><\/p>\n

It is the fourth year in a row that the sector has been the worst-affected industry for insolvency.<\/span><\/p>\n

Mark Supperstone, a partner at law firm S&W, said construction companies we<\/span>re still \u201cdealing with the legacy of high financing costs after a difficult 2025\u201d.<\/span><\/p>\n

He warned that, following the Bank of England\u2019s decision to hold interest rates earlier this month, \u201cthe current conditions are limiting project viability and refinancing options\u201d.<\/span><\/p>\n

Several large contractors went under in 2025, the biggest being \u00a3313m-turnover Ardmore Construction,<\/span> which called in administrators in August<\/span><\/a>.<\/span><\/p>\n

HE Simm, a mechanical and electrical firm<\/span><\/a> with a turnover of \u00a3110m, and<\/span> \u00a383m-turnover Breyer Group<\/span><\/a>, a roofing, repair, and refurbishment contractor, were also among the biggest firms to go under.<\/span><\/p>\n

The IS figures show a gap of more than 200 between the construction industry and the next most affected sector, which was the wholesale and retail trade of motor vehicles and motorcycles, with 3,728 insolvencies.<\/span><\/p>\n

However, the number of construction casualties in 2025 was down on 2024, when<\/span> 4,032 building businesses<\/span><\/a> became insolvent.<\/span><\/p>\n

Construction was the most affected trade for insolvencies in December, with 266 reported \u2013 41 more than wholesale and retail of motor vehicles and motorcycles. However, this was down on November\u2019s construction sector total of 300.<\/span><\/p>\n

Jo Streeten, managing director of buildings and places at consultancy Aecom, said it was \u201cencouraging\u201d to see the rate of insolvencies falling.<\/span><\/p>\n

She added: \u201cAs businesses return to delivery mode, they\u2019ll be keeping a close eye on cashflow resilience across the supply chain, ensuring projects remain viable.\u201d<\/span><\/p>\n

Supperstone also pointed to other positive signs, after January\u2019s<\/span> Purchasing Managers\u2019 Index of industry activity reached its lowest level of contraction since June<\/span><\/a>.<\/span><\/p>\n

\u201cBusiness optimism in construction is also up, at its highest level since May 2025, with companies expressing expectations of lower borrowing costs and greater infrastructure spending,\u201d he added.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

More construction firms collapsed in 2025 than in any other sector, Insolvency Service (IS) figures show. Almost 4,000 (3,931) became insolvent last year, accounting for 17 per cent of all cases. It is the fourth year in a row that the sector has been the worst-affected industry for insolvency. Mark Supperstone, a partner at law …<\/p>\n","protected":false},"author":90643,"featured_media":360693,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[554,552],"tags":[],"class_list":["post-538379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-administrations","category-financial","issue-online-news"],"yoast_head":"\nConstruction is worst sector for insolvencies four years running | Construction News<\/title>\n<meta name=\"description\" content=\"More construction firms collapsed in 2025 than in any other sector, Insolvency Service (IS) figures show. 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