According to new data, the construction industry is the third worst-hit sector in the UK for administrations in 2025
According to an analysis by Shakespeare Martineau, 10% of the 783 businesses that entered administration in the first half of 2025 were construction firms. This marks an 11% decrease compared to the 879 total administrations recorded during the same period in 2024.
Specifically, 79 construction companies filed for administration in the first six months of 2025, down from 105 in the first half of 2024.
Despite the annual decline, the overall number of administrations remains 3% higher than in 2023, reflecting continued pressure on UK businesses amid ongoing economic uncertainty.
Last year, it was reported that construction administrations made up 12% of all failed businesses, an increase of 22% from 2022, of a total of 1,641 businesses.
Andy Taylor, partner and head of restructuring at Shakespeare Martineau, said: “While the year-on-year drop in administrations is worthy of note, the overall picture for business remains challenging.
Regional administrations
The North West is now the region with the most business failures, with an 11% rise to 165 from 2024, while London (formerly the top region) has seen a 17% drop to 158 administrations.
Taylor continues: “The North West becoming the worst-hit region is a significant shift. This suggests that distress is becoming more geographically widespread, no longer concentrated in Greater London and the South East. Local economic factors – including legacy pandemic debt, delayed investment and supply chain costs – continue to weigh heavily.
“These figures, while worthy of note, do not detract from the fact that the trading environment for many businesses remains highly challenging. Many companies are surviving through short-term fixes, but without sustained growth, improved consumer confidence and better access to funding, there are still choppy waters to navigate.
Working against geopolitical uncertainty, post-election policy shifts, and energy costs
“The drop in manufacturing and construction filings could be the result of earlier failures having already removed the weakest operators. It may also reflect a slowdown in activity, with firms putting investment and hiring decisions on hold due to continued uncertainty.”
“Geopolitical uncertainty, post-election policy shifts, energy costs and ongoing global conflicts are still creating an unpredictable environment for business. Firms must remain agile and, above all, proactive.
“Our advice remains unchanged – seek expert help early. The sooner directors act, the more tools are available to protect the business and find a viable path forward.”
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