BWA Insolvency principal Bryan Williams says the rise of AI and digital tools is reshaping the business landscape.
Photo: UnSplash/ Silvia Brazzoduro
Construction insolvencies remain high with the number of cases outpacing other industry sectors.
A second quarter report from BWA Insolvency indicates there were 187 construction sector insolvance cases recorded in the three months ended in June, reflecting a 13 percent increase in business failures over the year earlier quarter.
BWA Insolvency principal Bryan Williams said the number of insolvency cases were down slightly from 192 cases in the first quarter, though the sector was still 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,” Williams said.
“Many firms are operating on razor-thin margins. When one job falls over, it can trigger a domino effect.”
That finding was consistent with Stats NZ June quarter report indicating the construction and manufacturing industries had the largest decreases in sales, out of the 14 industries it measured.
“Construction sales were down $720 million compared with the March 2025 quarter,” Stats said.
Williams said the data highlighted 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,” he said.
“Businesses are still vulnerable, especially those that haven’t adapted to new operating models.”
Williams said the rise of AI and digital tools was 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.”
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