Cautious optimism as insolvencies slow

The latest Insight Data Insolvency Report reveals that while there was a further increase of fabricator and installer companies registering as insolvent in May – up 34% compared to April – the rate at which businesses have been failing has in fact slowed since the beginning of the year.

According to Insight, 86 fabs and installers registered as insolvent last month, a rise of 22 compared to April.

There were also small insolvency increases among architectural practices, main contractors and small builders. Any rise in insolvencies is of course a worry, but for Insight Data’s general manager, Kirsty Winter, the latest figures should be taken as a sign that industry is actually ‘adapting to the current economic environment and finding ways to navigate through these turbulent times.’

You can read the full report here.

With the latest figures from Insight Data in mind, the question many people will be asking is, will we see a more buoyant, confident second half of 2024? Many industry pundits have suggested that this might be the case, based on economic forecasts, which predict an uplift in GDP between now and 2025.

Consumer confidence is vital to the health of the home improvement industry, especially for the relatively high value purchases associated with the glass and glazing sector, so if the headlines remain positive, then they could very well contribute to an uplift in demand for windows and doors.

However, that’s assuming that everyone gets their news from the same source. If you read the Guardian for example, or tune in to the BBC, you will be told that – despite the UK economy growing – we will still be lagging behind the rest of the G7 countries…

And in the run up to the election, the general public will be influenced even more than usual by all the news outlets doing their best to spin the stats and manifesto promises.

Will there be tax cuts, or tax rises – will interest rates go up or down, or stay the same? Will there be a stamp duty reduction for first time buyers?

Nobody will really know until the dust has settled after 4 July. But a lot of people will be holding off any big purchases for now, until they can get a clearer picture of where they stand financially post general election, which – potentially – could mean an upturn in demand to the second half of 2024.