When Suppliers Go Bust, How Frameworks Can Help
06/12/2025
By Liam Gratty, Director of Strategic Services, CHIC
Market Landscape
The UK construction sector remains one of the most dynamic yet financially vulnerable parts of the economy. While overall output has nudged ahead modestly, underlying distress continues to surface in company failures, especially among suppliers serving the housing development and maintenance sector.
The construction market still records the highest number of company insolvencies of any sector, a trend accelerating over the last few years as economic pressures mount.
Many construction businesses have entered into insolvency making up the biggest share of business failures across the economy. The fall of major players among some of the UK’s biggest contractors and suppliers has sent shockwaves through the industry, sparking thousands of job losses and threatening public sector project pipelines.
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