Alex Tremlett, Operations Manager at Insight Data, offers insight into the rising number of industry insolvencies.
As we work through this challenging time in the fenestration industry, it‘s impossible to ignore the alarming number of companies facing insolvency. The echoes of the financial crisis in 2009 are resonating once again.
Insight Data’s numbers reveal a disconcerting trend. Between 2019 and 2023, the sector witnessed a 7.2% contraction, averaging a loss of 38.5 companies per month. This isn’t merely a statistical observation; it signifies the dissolution of businesses, the impact of which reverberates through our industry.
Via our connection with a third-party credit agency, we receive weekly reports on company status changes. The revelation from October 2023 is staggering – 89 companies have either been listed as dissolved, in liquidation, wound up, or no longer trading. This marks a colossal 131% increase from the average monthly loss since 2019.
Regrettably, the challenges aren’t confined to the glazing industry alone. In our ‘Local Builders’ database, 149 companies met a similar fate in October 2023. The reverberations of insolvency are felt far and wide, reminding us of the interconnectedness of our business landscape.
Recognising the urgency of understanding and responding to this crisis, Insight Data are committing to providing a monthly insolvency report in the coming year. These reports will provide a consistent discourse on the state of our industry and equip its members with necessary information to help inform their sales and marketing strategies.
If you’re as concerned about these trends as I am, or if you simply wish to stay informed, I invite you to sign up for our monthly insolvency report. Feel free to drop me a message or connect with one of our dedicated team members at Insight Data to face these challenges head-on and emerge stronger. Call 01934 808 293 or visit www.insightdata.co.uk for further information.