In 2021, for example, there were about 130 bankruptcies out of a total of 4,450 construction companies, which corresponds to a rate of 3%. This rate has remained almost stable over the last four years. It is therefore not possible to say that more companies in the sector have had to close down because of the impact of the pandemic.
In their joint reply to a parliamentary question by MP André Bauler from the Democratic Party (DP), ministers Franz Fayot, Sam Tanson, and Lex Delles stated that while there were companies who experienced difficulties due to the pandemic in 2021, this was caused by staff shortages rather than a lack of orders.
The bankruptcies were thus not caused by the coronavirus crisis, but rather by poor business management, according to the three ministers, who add that the shortage of building materials also did not contribute to the bankruptcies.
With regard to mergers and acquisitions of construction companies, the ministers refer to a public consultation in progress. The consultation deals with the potential introduction of specific checks into Luxembourgish law, which would monitor company mergers in regard to healthy competition and the impact on the market.
