As Construction News reports on the latest administrations within the construction sector, Atul Kariya, Head of Real Estate and Construction at MHA and Georgina Eason, Partner, Licensed Insolvency Practitioner and Registered Fixed Charge Receiver at MHA, share their insights on the challenges facing the industry.
We’re sharing the full version of their submitted comment below, as featured in the Construction News article.
You can read the original Construction News article here.
"We are increasingly seeing that the combination of a high tax burden and complex and onerous regulation is both disincentivising and delaying companies from investing in new staff and development projects.
It is therefore no surprise that we’re seeing stagnant growth and falling confidence across the construction sector. Given that construction often acts as a leading indicator for the wider economy, this does not bode well for the UK’s broader economic outlook for 2025.
However, there are reasons for cautious optimism for construction businesses robust enough to withstand the current headwinds. In a global economy increasingly threatened by an all-out trade war, UK construction could find some relative stability, with a typically less complex supply chain than those of manufacturers and retailers. That being said, they are not immune from concerns about the knock-on effects of global tariffs on economic growth and consumer confidence.
2025 is set to be a bumpy year, but with increasing optimism, with strong order books and pipelines through 2026 and beyond, then perhaps we will see the green shoots of recovery on the horizon.”
Atul Kariya, Head of Real Estate and Construction at MHA
"Insolvency is a difficult reality for businesses and individuals, which often takes an emotional toll on those affected. It’s crucial to remember that support is available at every stage, whether you're dealing with potential failures in your supply chain or facing financial difficulties within your own business. Engaging with professional advisors early is key. Professional Insolvency Practitioners/ We can assist you in identifying warning signs of insolvency and determining whether your situation is recoverable and one you can trade out of. They / We can also help you understand your business’s financial position and open up a wider range of options.
Directors must take steps to protect creditors’ interests, as they remain accountable for decisions made during financial distress. The sooner you identify the warning signs, the more likely it is that a recovery plan can be put in place. There are always options, and it is often possible to find practical solutions that protect your business and support your staff. The most important thing is to reach out as soon as possible - early intervention offers protections and can make a significant difference."
Georgina Eason, Partner, Licensed Insolvency Practitioner and Registered Fixed Charge Receiver at MHA
