Light at the end of the tunnel?
Do the latest business insolvency figures for the construction sector signal a pinprick of light at the end of a very long tunnel?
According to the ONS, the sector headed the rest of the economy in the number of insolvencies over 2025, with 17% of all UK insolvencies from our sector. That’s 3,950 construction firms.
BUT ON THE BRIGHT SIDE this is (slightly) down on 2024.
According to the latest data from Glenigan, project starts and planning approvals both decreased by around 30% per cent over the three months to the end of January. They attribute this to slow demand and rising production costs at the back end of 2025, driven by pressure on household incomes and economic growth that can only be described as ‘modest’.
BUT ON THE BRIGHT SIDE according to the latest CIPS survey, the downturn in construction sector activity is showing a ‘gradual moderation’; their future activity expectations remain positive for 2026.
What do you think? Are you seeing the silver lining to the cloud yet? Are we simply left with the strongest players in every sub sector of construction, the ones like Scotts who have been able to plan and flex for leaner times, or is there genuinely that light at the end of the tunnel?
And where’s there’s light, there’s hope. We’re ready.
James Scott
MD
