Construction has more insolvencies than any other sector
New research has revealed that the construction industry saw the highest number of insolvencies in 2020, with 2,051 insolvencies in total, equating to 5.8 per 10,000 businesses.
Despite this, the construction industry experienced a 30.8% decrease in insolvencies compared to 2016, the 4th largest decrease in the UK.
The research from Business Rescue Expert, shows the insolvency rates across sectors in 2020, as well as the trends in insolvencies over the last five years.
You can view the research in full here – https://www.businessrescueexpert.co.uk/insolvency-rates-by-industry/
The construction industry had the most insolvencies in 2020 with 2,051 insolvencies in total. Despite this, the construction industry ranked the 7th sector with the highest insolvencies per 10,000 businesses, with 5.8 businesses per 10,000 seeking insolvency.
However, there has been a decrease in insolvencies in the construction industry over the last five years, with 30.8% fewer insolvencies in 2020 than in 2016 despite the pandemic. This may be because of the extensive government support businesses have received throughout the pandemic.
The industries with the most insolvencies in 2020
|
Rank |
Industry |
2016 insolvencies |
2016 insolvencies per 10,000 businesses |
2020 insolvencies |
2020 Insolvencies per 10,000 businesses |
Five year change |
|
1 |
Construction |
2,546 |
8.4 |
2,051 |
5.8 |
-30.8% |
|
2 |
Accommodation and Food Service Activities |
1,529 |
10.3 |
1,705 |
10.5 |
2.1% |
|
3 |
Wholesale and Retail Trade; Repair Of Motor Vehicles and Motorcycles |
2,046 |
5.5 |
1,673 |
4.3 |
-21.9% |
|
4 |
Administrative and Support Service Activities |
3,219 |
15.4 |
1,441 |
6.1 |
-60.4% |
|
5 |
Manufacturing |
1,346 |
10.1 |
1,162 |
8.4 |
-16.5% |
