Construction firm closures near 50 percent

Study reveals high closure rates among new UK construction companies

Nearly half of all new construction companies registered in the UK between 2020 and 2024 have since closed, according to a new analysis by Midlands Concrete Pump Hire using data from Companies House.

The report shows that 126,817 out of 260,919 companies—or 48.6%—have either gone into administration, liquidation, or have been dissolved during this five-year period.

The analysis highlights notable variation in closure rates across the industry. Commercial building construction has the highest failure rate, with nearly 94% of firms closing after incorporation. High-risk areas also include bridge and tunnel construction (60.8%), railway and underground construction (56.0%), and road and motorway works (52.2%).

“The data shows just how tough the market can be for new entrants, particularly in large-scale infrastructure,” said a spokesperson for Midlands Concrete Pump Hire. “Understanding which parts of the sector face the most risk helps people make better business decisions.”

In contrast, some construction-related sectors showed stronger performance. Construction holding companies had the lowest closure rate at 25.8%, followed by firms engaged in equipment leasing (32.6%), construction installation (34.6%), and civil engineering projects not elsewhere classified (35.0%).

Utility-focused sectors, including projects for electricity and telecommunications (35.7%), also reported better-than-average resilience.

The findings serve as a caution for new entrepreneurs in the construction space and underscore the importance of sector-specific planning and risk awareness. Midlands Concrete Pump Hire said it hopes the study will support more strategic planning and long-term sustainability across the industry.

The data was sourced directly from Companies House records and categorised according to each company’s declared “nature of business” upon incorporation.