Tokio Marine HCC has published a report on the UK construction sector, highlighting that credit risk remains high in 2024, with business failures and late payments rising. Insolvency figures have increased for three consecutive years, with the sector now accounting for 17.4% of all UK insolvencies. Small profit margins and fixed-price contracts hinder the ability to pass unexpected costs to customers, exacerbating financial strain. Additionally, failures of larger companies are impacting smaller businesses down the supply chain, causing project delays. Late payments are prevalent, with 20% of invoices paid late affecting smaller firms’ cash flow. Although interest rate cuts may improve conditions, credit risk will persist due to challenging refinancing conditions. To read Tokio Marine HCC’s report, go to https://www.tmhcc.com/en/news-articles/thought-leadership/trade-credit-uk-construction-sector-report-2024.