Construction sector faces further uncertainty as insolvencies tick up
Today’s company insolvency statistics show construction insolvencies ticked up 8.7% to 301 in February, from 277 in January 2026.
The construction industry experienced the highest number of insolvencies in the 12 months to February 2026 at 3,851, 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 highlight the continued pressures already faced in February by the construction industry amid challenging economic conditions. Regulatory barriers, planning delays, funding challenges, labour shortages and falling housing demand were already proving significant barriers for sector growth efforts. With the conflict in the Middle East now impacting energy costs, inflation set to rise, and the cost of debt continuing to put pressure on working capital, this signals further challenging times and uncertainty for businesses in the sector.
“As an energy intensive industry, construction is particularly susceptible to the global energy price spikes caused by the onset of the war in Iran. While pipelines have proved strong, there are significant concerns around long-term availability and prices of materials, along with supply chain disruptions, which may at best delay projects or, in some cases, prevent them from coming to fruition, as investors re-evaluate scheme viability.”
James Hawksworth, restructuring advisory partner at RSM UK, commented “The 301 winding up petitions issued by construction suppliers in Q1 2026* represent a seven year high. When combined with the delayed impact of the Middle East conflict on an already uncertain economic outlook for the remainder of 2026, the strain being felt across the sector risks becoming more entrenched than cyclical. The increasing level of risk will impact funders’ pricing and lending appetite, which is likely to contribute to a further increase in insolvency numbers in the months ahead.
“For construction firms wanting to manage the current headwinds and position themselves for future growth, regular professional assessment of financial resilience has never been more important.”