Source: BWA Insolvency
New data shows construction continues to lead New Zealand’s insolvency statistics, with 187 cases recorded in Q2 2025, the highest of any industry.
Figures from the latest BWA Insolvency Quarterly Market Report reveal that while overall insolvency numbers have plateaued, sector-specific pressures remain. The construction sector has seen a 13% increase in business failures this quarter compared to Q2 2024, with cases dropping from 192 cases in Q1 2025 or 3%.
BWA Insolvency principal Bryan Williams says the construction sector is continuing to feel the brunt of economic challenges, with business services and retail trade also facing significant challenges.
“Despite a slight quarterly dip, construction insolvencies remain elevated. Project delays, cost overruns and cashflow constraints are still hitting builders and contractors hard,” says Williams.
“Many firms are operating on razor-thin margins. When one job falls over, it can trigger a domino effect.”
Business services also saw a sharp rise in insolvencies, jumping 56% from Q1 to Q2. Retail trade followed with a 26% increase, while food and beverage, manufacturing, and property sectors saw modest declines.
Williams says the data highlights the uneven nature of economic recovery.
“Some sectors are adapting and consolidating, while others are still under pressure. Insolvency trends are no longer just about macro conditions, it’s about how each industry is responding to change.”
While total insolvencies fell 1.6% from Q1 and 5.5% year-on-year, Williams cautions that the figures reflect a stabilisation at elevated levels, not a full recovery.
“We’re seeing a plateau, not a turnaround. Businesses are still vulnerable, especially those that haven’t adapted to new operating models.”
Williams says the rise of AI and digital tools is reshaping the business landscape.
“New entrants are leveraging technology to run leaner, more agile operations. That’s where growth is happening. Older businesses that haven’t evolved are struggling to keep up.”
- Construction: down 3% from Q1, from 192 to 187, up 13% year-on year
- Business Services: up 57% from Q1, from 53 to 83, up 14% year-on-year
- Retail Trade: up 26% from Q1 from 38 to 48, up 33% year-on-year
- Food & Beverage: down 18% from Q1, from 76 to 62, up 24% year-on-year
- Manufacturing: down 16% from Q1, from 49 to 4, down 2% year-on-year
- Property & Real Estate: down 5% from Q1, from 64 to 6, down 34% year-on-year.
Williams says early intervention remains critical: “Whether you’re in construction or consulting, the message is the same: seek help early. Waiting too long limits your options.”
- Total insolvencies: 666 (down 1.6% from Q1, down 5.5% year-on-year)
- Liquidations: 616 (down 3.6% from Q1, down 3.8% year-on-year )
- Receiverships: 46 (up 35.3% from Q1, up 9.5% year-on-year)
- Voluntary administrations: 4 (flat from Q1, down 82.6% year-on-year).
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The full Quarterly Market Report is available here.
About BWA Insolvency
BWA Insolvency is a leading insolvency firm that supports New Zealand businesses through liquidations, receiverships and voluntary administrations (VA), specialising in VA in particular. Founder Bryan Williams has 30 years’ experience in the industry and has recently become just the second person in New Zealand and one of 200 people worldwide to be named a Fellow of global insolvency organisation Insol International. About the BWA Insolvency Quarterly Market Report
BWA Insolvency has been tracking data on liquidations, receiverships and voluntary administrations since 2012. The Registrar of Companies Office records the filings of companies that have gone into a formal state of insolvency. BWA Insolvency then does a deeper investigation to show industry trends and provide a detailed snapshot of what’s happening in the market for the Quarterly Market Report. |
