New research by Witan Solicitors, has analysed data from Companies House to determine the number of construction firms incorporated between January 2021 and December 2025 and compared this to the number that have since entered administration, liquidation, or been dissolved.
The data found that in the past five years, two in five (41.6%) of newly incorporated construction companies have gone into administration, liquidation, or have now dissolved .Out of 257,087 businesses that opened during this period, 107,086 have closed.
The research also analysed business mortality rates across different areas of the construction industry. Companies involved in the construction of bridges and tunnels (70.5%) faced the highest…