Construction insolvencies: energy price spikes could hamper growth efforts
Today’s company insolvency statistics show construction insolvencies ticked up 1.8% from 272 in December 2025 to 277 in January 2026.
The construction industry experienced the highest number of insolvencies in the 12 months to January 2026 at 3,912, making up 17% of all industry cases.
Commenting on the latest construction industry statistics, Kelly Boorman, national head of construction at RSM UK, said: “Today’s figures show the construction industry continues to face significant pressure points around mobilisation of pipeline, fall in housing demand and continued regulatory burdens. Material and labour costs have remained stable, but as an energy intensive industry, the anticipated price spikes caused by the conflict in the Middle East will likely hit the industry hard in the coming months and could significantly hamper growth efforts.
“Access to debt and working capital remains a challenge, with labour shortages placing further pressure on the industry. While the extent to which the current geopolitical climate impacts interest and inflation rates in the long term remains to be seen, these pressures are unlikely to ease anytime soon.
“Pipelines in the sector remain strong, with greater commitments and capacity across the supply chain. However, this remains vulnerable to the pressures of rapidly increasing demand, particularly when paired with price inflation and limited access to affordable funding.
“With margins already squeezed across the sector, increasing commodity prices, mobilisation challenges and supply chain tensions could prove a catastrophic blow to the industry, preventing the promises of the pipeline from coming to fruition.”