It’s not difficult to see that the construction industry is in serious trouble. Numerous big-name companies have collapsed in recent months, leaving behind devastated employees and potential homeowners.
Numerous well-known retailers have also recently closed down. In addition to the collapse of Remi Capital investment firm earlier in the year that dominated headlines, there was also the tragic collapse of Send grocery app.
These are only a few examples of the many, many liquidations and administration appointments that Australia has seen in the past two years.
The construction sector accounted for 28 per cent of all insolvencies. However, many other industries were also affected by rising inflation, interest rate pressures, COVID chaos, shortages of labour, and disruptions to supply chains.
There were 1536 collapsing buildings in NSW. Victoria had 1022, Queensland had 665, WA 350, South Australia had 196 and South Australia had 196.
Equifax, a consumer credit reporting agency, reported that the number of non-construction and construction companies entering external administration in Australia in May was over 30 per cent higher than last year. This was notably evident across the Eastern seaboard. It also noted a “substantial rise in creditor windups, voluntary administrations, and restructuring appointments”.
As fuel costs rise, consumers will continue to shop in the “needs” category, which includes groceries and health insurance, but they will be less likely to spend on the “want” categories such as electronics, clothing and footwear.
