The construction sector “remains at the heart” of concerns, underlines Creditreform. Bankruptcies in this sector increased by 27.1% in 2024, reaching 197 cases last year. This increase is part of a lasting crisis trend, since in 2023 the sector had already experienced an increase of 43.52%. Among the large companies having filed for bankruptcy in 2024, we can cite Maconlux Sàrl, Carvalho Constructions Générales Sàrl and Cenaro.
“Although some signs of recovery were observed in the third quarter of 2024, they will not be enough to overcome the challenges in 2025, estimates the provider of business information, marketing data and receivables management solutions. Increased support will be needed to strengthen this essential branch of our economy. To stimulate the sector, it would certainly be useful for the government to accelerate the process of carrying out the major construction projects planned.
Juan Santiago, Authorized Manager of Creditreform, adds that the construction crisis affects many professions, such as “heating engineers, electricians and even tilers”.
Overall, 1,193 bankruptcies were recorded in Luxembourg in 2024, a number increasing by 26.38% compared to 2023. The Grand Duchy thus returned to the 2021 level (1,199 bankruptcies). When questioned, Creditreform said it did not have precise statistics on the number of corresponding eliminated jobs.
Regardless, the service sector dominates the statistics with 693 bankruptcies, recording an increase of 39.44% compared to the previous year. In addition, companies with more than five years of existence are the most affected, with a “stark” increase of 52.69%: 852 bankruptcies in 2024 compared to 558 in 2023. Young companies have been relatively spared, showing a decline 11.66% of failures.
