Derby steelwork fabricator Robinson is to undertake a review of its business due to “unprecedented challenging market conditions”, which could lead to the firm's closure.
The family-owned company, which employs almost 250 people, told the BBC a downturn in the construction industry and the looming retirement of its managing director had prompted the move.
A company spokesperson said it had entered into a 90-day consultation period with staff.
In a statement, the firm said: "The last two years have been extremely tough for the construction industry whilst also experiencing unprecedented challenging market conditions.
"There has been a steady downturn in demand for steel structures and the government has announced recent spending cuts.
"In particular across the Building Schools for the Future programme, which has resulted in the cancellation of numerous high-worth contracts."
Robinson has an annual turnover of over £40m, and produces 17,000 tonnes of fabricated steel each year.