- by Amy McNeice on 28/06/2022
Over the past few weeks we've seen inflation continue to challenge Irish business. Thankfully this has yet to translate into our corporate insolvency figures in Q1, 2022 (which were down 34% year on year). At the same time our Q1 figures did reveal that 2,545 companies were dissolved in the first quarter of this year, up 19% on the same time last year approaching the three year mark since COVID-19 began, the Irish economy is still experiencing the impact and uncertainty of the pandemic.
So a drop in the traditional insolvency route, but an increase in the number of people closing the doors and walking away from their companies. While this jump was forecast as government pandemic supports were phased out, we'll be watching our Q2 figures, due for release at the end of next week, closely for indications of a stronger trend forming.
While all businesses are tackling inflation, some industries are likely to be affected to a greater extent than others. Coupled with challenges around staffing shortages, supply chain reliability and rising energy and material costs these industries are likely to result in higher risk levels.
As a point in time reference, CRIFVision-net have analysed the current 'risk levels' of the top sectors throughout Ireland's economy. In a month's time we'll re-run this analysis to identify further micro trends. The goal is to discover the industries demonstrating less risk and those which are still showing symptoms of higher risk.
From the above we know service industries are still recovering from the pandemic. These are more open to consumer sentiment, with staffing shortages, rising costs and interest rates likely to continue to be a challenge. For others higher energy costs and supply chain delays, along with the availability of components may be slowing a return to normal growth.
Similar to last year's analysis, as the Irish economy continues to deal with the hardships the pandemic brought, it may come with no surprise that the Hotels and Restaurants industry is at the top of the list for most risky industries so far in 2022 in the high risk category.
In a like manner, the top five least risky industries remain the same as last year for the most part. This is more than likely as a result of such industries opening sooner than most during Covid-19, therefore they may not be faced with as high a risk as other industries.
CRIFVision-net Credit Reports use the very latest technology along with the key critical risk factors facing Irish businesses today, to continually monitor and evaluate every score every day. Over 30 years of experience in Business Information has allowed CRIFVision-net to build the best Credit Report Scorecard.
Simply click the following link to access Credit Reports www.vision-net.ie/whatIsCreditReport.jsp#link3
Using this data as a guide, it's still vital that companies and individuals continue to remain vigilant and carry out ongoing tests on customers, potential clients and suppliers to help protect their business interests.
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