The construction sector remains a significant contributor to the UK's insolvency figures, accounting for 16% of all insolvencies in December 2024, with 392 companies within the industry entering insolvency. While the sector saw a slight drop compared to previous months, it remains under immense pressure from rising costs. The soaring prices of materials and labour are squeezing margins, leaving many construction firms struggling to stay afloat despite their efforts to adjust and remain resilient. The road ahead looks to be uncertain, with businesses continuing to grapple with external challenges that show no sign of letting up.
The Wholesale and Retail sector is also feeling the squeeze, with 362 companies declaring insolvency in December 2024. In the lead-up to Christmas, footfall across UK high streets, shopping centres, and retail parks fell by 2.2% compared to December 2023, as reported by the British Retail Consortium (BRC) and analysts at Sensormatic.
The biggest drop was seen at shopping centres, which experienced a 3.3% decline. With fewer shoppers coming through the doors, retailers will need to get creative in 2025, finding new ways to boost sales or reverse the declining footfall if they hope to survive the coming year.