Construction worst-hit sector for insolvencies


The Insolvency Service has revealed that the construction industry has been hit the hardest with the most insolvencies in the past year. A whopping 4,401 construction companies in England and Wales went under, making up 18% of all business insolvencies. This is almost 500 more than the next worst-hit sector, wholesale and retail, which had 3,906 insolvencies, followed by accommodation and food services with 3,821 cases. In April 2024 alone, 399 construction businesses became insolvent, up from 315 in March. Margins are being squeezed due to high interest rates and tight funding, alongside rising labour costs. Major issues include growing project pipelines and a lack of working capital. Adding to these challenges are political uncertainty, longer payment times, and expected labour shortages this summer.


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