7000 Construction Firms Facing Bankruptcy in 2025

difficult times for construction industry

7000 Construction Firms Facing Bankruptcy in 2025

Financial strains are being faced by many industries, but construction has been named as the most hard hit, with 7000 firms facing bankruptcy in 2025. A further 97,603 have been labelled as in “significant financial distress”.

What the latest report says…

The latest Reg Flag Report, insolvency practitioner Begbies Traynor said that “6,830 firms in the UK ended 2024 in critical financial distress.”

Tax changes from the October budget are only set to increase the struggles on construction and other industries. It was reported that the estate and property industry had 6,697 firms facing bankruptcy, and support services 6,711.

What’s causing the struggles…

Begbies Traynor partner Julie Palmer expects the number of insolvencies to rise as businesses struggle “to cope with the perfect storm of rising costs, financial instability and fluctuating market conditions.”

It’s sadly a continuing trend, with Red Flag reporting that in 2024 up until reporting in November, construction accounted for the highest number of insolvencies.

The difficult financial climate across multiple industries is a wider issue for construction. According to Johan Geeroms, Director of Risk Underwriting Benelux, maximum vigilance is required from anyone doing business in the construction industry. “Bankruptcies are lurking everywhere. You don’t want to experience a situation where your company has delivered and then a large invoice is not paid because your customer has gone under.”

The industry really is championing for a reduction in tax burden and strong economic growth.

For more details, read this very informative article from Construction News.

Brave steps needed, it’s time to reach out for support…

If you’re facing financial struggles this year, don’t be afraid to outsource. It’s a financially savvy move to reduce the growing expenses tied with having your own workforce. Outsource your incoming calls and receptionist tasks to us at CSnotepad. We have a friendly and professional team, with over 15 years experience supporting businesses just like yours.

For more information on the services we offer, visit our website here.

Related Posts

Want to see if CSnotepad is right for you?

Click on the button and one of our expert team will be in touch!

Find out if CSnotepad is right for your business...

Fill in your details and one of our friendly team will get in touch to see how we can help.

By clicking Get in touch you hereby agree to your details being held by Call Solution Ltd (trading as CSnotepad) for the purposes of contacting you via email and/or telephone regarding the services it provides.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.