Newly released company insolvency statistics found that specialised construction activities showed a marginal year-on-year decrease to 186 in July 2026, down from 194 in July 2025, but continued to account for over half (54%) of sector insolvencies.

In the 12 months to July 2026, the construction sector experienced 3,841 insolvencies, the highest number of any sector, making up 17% of all insolvencies across the economy.

James Hawksworth, restructuring advisory partner at RSM UK, said the figures shine a light on the construction sector’s diminishing capacity for resilience against economic headwinds.

“As an energy intensive industry, continued conflict and uncertainty in the Middle East is proving a significant blow for many construction businesses, delaying investment and driving prolonged cost pressures amid an uncertain economic outlook,” he said.

“With the number of winding up petitions issued across the sector in the first half of 2026 marking the second highest six-month period on record, these challenges will only exacerbate existing challenges, increasing the risk of a further rise in insolvencies.”

James added: “Specialised construction activities comprise over half of all sector insolvency cases, with smaller and more specialised construction firms being particularly vulnerable to the impact of price increases and project delays.

“The government’s announcement this week of an updated National Planning Policy Framework is welcome, providing some much-needed clarity for the sector which could support the delivery of new homes and help to stimulate the market.

“However, the issue of project viability remains paramount. As increasing energy and material costs squeeze already tight margins, and long-term uncertainties over the wider economy subdue investment appetite, many construction businesses remain in urgent need of near-term relief and support to stay afloat across the coming months.”