Construction bankruptcies are showing sharp increases across the eurozone this year. According to our latest survey, the peak has not yet been reached. That will follow next year. Bad news for Belgian construction is that the increase in our country is of +21%.
Recent data shows a noticeable rise in insolvencies across several European countries compared to the previous year: Germany (+20%), France (+31%), Italy and Sweden (both +35%), with the Netherlands seeing a more modest increase of +4%. In Belgium, the figure stands at +21%. In September 2024 alone, 306 Belgian construction companies went bankrupt, with many others operating at break-even or at a loss.
According to Johan Geeroms, Director of Risk Underwriting for Benelux, the construction sector ranks among the top three most affected by large-scale insolvencies. “These are often companies with heavy financial commitments that face project delays—either due to postponed payments or ongoing setbacks in project execution,” he explains.
The report also highlights growing concerns about large construction firms that may be particularly exposed. In the first half of the year, 30 companies with annual revenues exceeding €50 million went bankrupt—mainly across Europe and Asia.
While a cautious recovery is anticipated for the construction sector by 2025, Geeroms warns that its outlook remains fragile. Contributing factors include tighter government budgets for housing and infrastructure, a shortage of skilled labor (especially for smaller firms), demographic challenges such as an aging workforce, and increasingly unpredictable weather patterns.
There is some cautious optimism, however. Geeroms notes that declining interest rates could offer relief. The report provides an in-depth financial overview of the construction industry, revealing high debt levels among European construction companies—an added risk factor. Belgium, for example, falls into the red zone with a net gearing ratio of 67%.
