Decline in insolvencies by sectors most hit by recession – Vision-net.ie

The industries most impacted by the economic downturn – including manufacturing and motoring – showed continued signs of improvement in August 2014, according to new figures from Vision-net.ie.

Manufacturing and Motor Industries Show Improvement in August 2014

The manufacturing sector experienced 50pc fewer insolvencies last month (five) when compared to August last year (10), while the motor industry saw no insolvencies during August 2014. Vision-net.ie said, however, that overall insolvencies across all sectors increased by 19pc (108 v 91) in August when compared with last year.

Forty-five percent of last month’s company insolvencies were recorded in Dublin, followed by 19pc in Cork and 6pc in Galway. Leitrim, Offaly, Laois, Sligo and Westmeath experienced no insolvencies during August.

New start-up ar seven years high
Photo: vision-net.ie

Positive Trends in Start-Up Activity: Industries Bouncing Back

The figures reveal continued growth in the number of company start-ups. Some 983 new companies were formed in August – up 8.4pc on the same period last year. This amounts to an average of 38 company start-ups every day this month.

Vision-net.ie said start-up figures for industries badly affected by recession are also experiencing positive growth. Construction company start-ups grew 30pc on the same period last year (63 to 82). The number of finance company start-ups also grew with 53 companies started compared to 21 last year. The number of real estate start-ups was 44 in August 2014, compared to 31 in August last year.

Effect in Professional Services, Wholesale, Retail, and IT Drive Company Start-Ups

Professional services, wholesale and retail, and IT industries accounted for 46pc of company start-ups in August 2014.

Vision-net.ie said bad debt judgments were awarded against consumers and companies in July, worth €33m. Seventy-nine percent of judgments (310) were awarded against consumers, totalling €30.7m, or 93pc of the overall value of all judgments awarded.

While the number of judgements awarded against companies and consumers, year-on-year fell by 19pc, their overall value increased by 22pc.

Christine Cullen, managing director of Vision-net.ie, described August’s figures as “good news for industries hit particularly hard by the recession”.

Positive Outlook: Signs of Recovery for Recession-Hit Industries

“The sectors which experienced a marked decline in business during the recession, particularly construction, real estate and manufacturing are beginning to show signs of recovery,” she said. “A pick-up in these key sectors is good news and critical to Ireland’s continued journey back to growth.

“The increase in finance company start-ups is also encouraging, and may be indicative of greater liquidity in our lending market, particularly in the mortgage market.”

Grainne Rothery