Middle East conflict disproportionately affects smaller construction firms
New data from the UK’s Insolvency Service shows that small and medium-sized construction companies have been most affected by rising financial distress linked to geopolitical tensions in the Middle East. In Q1 of May 2026, 592 such businesses became insolvent—the highest quarterly figure since early 2025—and now account for around 60% of all construction insolvencies.
