I declare bankruptcy! Which industries have recently gone bankrupt?
The word crisis has been with us almost every day for some time. We can hear them on TV, read a press article about them, or find them on websites. Politicians, our boss and even our third-floor neighbor are talking about the crisis. Does it threaten those who run their own business? Currently, many industries are struggling with financial problems caused by economic changes at the turn of recent years and the global crisis. Some of them are particularly endangered and we are witnessing the liquidation of both large concerns and small enterprises more and more often. Since the beginning of the year, 713 enterprises have already collapsed, which is 5% more than in the previous year. However, how to anticipate market changes and choose an industry in which we will not be forced to file for bankruptcy after a few years?
Why do companies file for bankruptcy?
Bankruptcy must be declared by a company that not only generates losses and debts, but does not pay them back on time. There are situations when the company comes to an agreement with the creditor, and the creditor agrees to subsequent payment settlements. This happens mainly in situations where the financial condition of the entire industry is in a difficult condition and the creditor himself does not want to lose a significant business partner and a large customer. A bankruptcy petition should also be filed when the company is able to pay its liabilities on an ongoing basis, but they largely exceed its assets, e.g. through changes in exchange rates.
Who declares bankruptcy?
Market specialists indicate several areas of economic activity that are particularly endangered. It is primarily the construction industry, which is currently facing great difficulties in obtaining loans, and unfortunately it is not able to survive without financial outlays. It is also worth mentioning the Euro 2012 Championships held last year, during which very large investment projects were implemented. In the first quarter of this year, as many as 85 construction companies went bankrupt, and the current risk of collapse is as high as 46.9%. Investors are afraid of new projects and implementations due to low demand, restrictions on financial institutions and growing repayment periods.
Due to their links to the construction industry, the crisis is also felt by production companies, mainly in the area of metal processing and steel structures, and the furniture sector. In addition, real estate developers are increasingly declaring bankruptcy - real estate prices have dropped significantly, and after the quite recent housing boom, the market has become largely saturated.
Experts also mention the transport, tourism, printing and cultural and entertainment industries as belonging to the group of higher risk of bankruptcy. Companies from this market area most often struggle with the lack of financial liquidity, resulting from delays in the payments of contractors, and therefore are not able to pay their liabilities.
As for the regions of high risk of bankruptcy, experts mention the Mazowieckie, Dolnośląskie and Śląskie voivodeships, because in these areas we have the largest number of registered companies. In the Lubuskie and Małopolskie voivodships, however, the number of bankruptcies increased by over 50% compared to the previous year. In Podlasie, Lublin and Greater Poland, the number of companies that declared bankruptcy decreased compared to the previous year.
However, in which industries can we feel confident? Enterprises from the agri-food and pharmaceutical sectors as well as service companies are not threatened with bankruptcy. The IT, energy and communication industries are equally stable. It is also worth mentioning that according to forecasts, despite many bankruptcies of commercial companies, the dynamics of further bankruptcy growth will decline to the level of approx. 10%. The construction industry is expected to revive thanks to the launch of new EU projects in 2014.
Bankruptcy is an inherent part of the economy, unfortunately. There are ventures, projects and implementations doomed to success, but also those that will not succeed. When starting your own business, it is worth doing detailed market research and analyzing economic reports from recent years. Reading, for example, the information published in Monitor Sądowy i Gospodarczy, may prevent a misguided idea or strengthen our choice as to the industry in which we want to operate.