Insolvency rates rise amid government growth promises
By Insight Data’s general manager, Kirsty Winter.
The recent King’s Speech from the Labour Government couldn’t have come at a more crucial time for our industry. With planning reform, devolution, clean energy, and attracting investment, some might suggest a glimmer of hope appears against rising insolvency rates.
In July alone, the fenestration and construction sectors saw alarming figures: 99 fabricators and installers, 28 architectural practices, two main contractors, and 115 small builders registered as insolvent, closed, or no longer trading. Once again, these numbers continue to highlight the economic challenges the industry faces, as well as the precarious business landscape that Labour has now inherited.
The Labour government’s commitment to growth is an important message. The industry’s struggles are evident, with insolvencies having a significant impact. Could planning reforms and investment in clean energy be the lifeline many businesses need to navigate these turbulent times?
The King’s Speech also emphasised the importance of devolution, which suggests local authorities will be provided with tools to better support regional businesses. When we consider the rising rates of insolvencies for local builders, this holds great potential for the future of our industry. A localised approach might foster a more resilient and adaptive industry landscape, offering tailored solutions to the unique regional challenges that many local builders contend with.
Although any rise in insolvencies is unwelcome, the third financial quarter has kicked off without a dramatic increase. This trend is encouraging as it shows that businesses are adapting to the current economic conditions and finding ways to navigate through these new, albeit challenging, times.
Looking ahead, there are reasons to be optimistic about the industry’s future. As the broader UK economy moves towards recovery, it should create a more supportive environment for businesses in our sector. However, it will be crucial to maintain vigilance and proactive risk management to sustain this positive trend and build resilience against future economic pressures.
At Insight Data, we are dedicated to providing our industry with the insights needed to navigate these challenging times. Our data is designed to empower businesses, helping them make informed decisions and build resilience against economic demands.
To access the full, free report, visit our website at www.insightdata.co.uk.