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📊 Construction Industry Update: Key Insights on Company Insolvencies – November 2024
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In November 2024, company insolvencies increased by 13% compared to October 2024 and were 12% lower than November 2023. The construction sector remains the most affected, accounting for 17% of all insolvencies in the past year. Below, we explore the updated figures and the factors shaping these trends.
🔹 November 2024 Breakdown
- Total Insolvencies: 1,966 cases (compared to 1,743 in October 2024).
🔻 Creditors’ Voluntary Liquidations (CVLs):
- 1,565 cases, up 8% from October, making up 80% of all insolvencies.
CVLs continue to dominate as businesses struggle with financial pressures and an inability to restructure or secure funding.
📉 Compulsory Liquidations:
- 254 cases, up 37% from October.
This sharp increase reflects intensified enforcement of debts and a growing inability for businesses to repay creditors.
🚀 Administrations:
- 132 cases, up 36% from October and 12% higher from November 2023.
🔽 Company Voluntary Arrangements (CVAs):
- 14 cases, up 17% from October, showing slight improvement in restructuring efforts.
🔹 Insolvency Rates & Long-Term Trends
- 12-Month Insolvency Rate: 52.9 per 10,000 companies (down from 57.3 last year).
This equates to 1 in 189 companies entering insolvency in the past year. - Historical Context:
While insolvencies have risen post-pandemic, rates remain significantly below the 2008-09 recession peak of 113.1 per 10,000 companies.
🔹 Construction Sector Impact
Total Insolvencies in Construction (12 Months to November 2024): 4,264 cases, making up 17% of all company insolvencies.
- Key Challenges:
- Cash Flow Issues: Payment delays in the supply chain continue to cripple smaller firms.
Although insolvency numbers have shown some stabilisation compared to the previous year, construction businesses remain highly vulnerable to broader economic pressures. Strategic planning and financial resilience are essential.
⚠️ Stay Proactive to Avoid Financial Distress
We invite credit management teams across industries to make the most of the tools and services we offer:
🔍 Identify Early Warning Signs: Actively monitor payment patterns and the financial health of your customers and customer customers to stay ahead of potential issues.
💡 Maximise Financial Tools: Take advantage of our services to optimise cash flow management and effectively mitigate risks.
📞 Let’s Connect:
For tailored advice on overcoming financial challenges, contact us at 01527 503990.