Company collapses surpass pre-Covid levels, building industry hit hardest
Written by admin on February 16, 2024
The number of company collapses has surged by 44 per cent as the bloodbath continues with construction industry insolvencies leading the way.
New data from credit agency Equifax released to news.com.au this week painted a sobering picture of the reality of Australia’s flailing business landscape.
Equifax’s Quarterly Commercial Insights found that business insolvencies have risen to a five-year high, long surpassing pre-Covid volumes.
And in a concerning discovery, in December, insolvencies jumped by 44 per cent compared to the same period the year before, according to the analysis.
“Total insolvencies in 2023 consistently surpassed pre-Covid volumes, due to challenging market conditions seen throughout 2023,” Equifax’s General Manager of Commercial and Property Services, Scott Mason, said.
“This trend continued through to the end of the year, with December having the highest monthly insolvency volumes in the past five years.”
In a surprise to no-one, the construction industry received the title that nobody wants — the worst hit industry.
Australia’s embattled building sector recorded a “record high” level of insolvency, up 28 per cent in the last three months of 2023 as opposed to the like period the previous 12 months.
