The number of companies in the Midlands filing for administration during the first nine months of the year has outpaced last year’s figures by more than 10%, according to Interpath Advisory, as industrial manufacturing, building & construction, and retail drive insolvencies.
Analysis of notices in The Gazette shows there have been 126 administrations across the Midlands in the first nine months of 2024, representing a rise of 11.5% when compared to last year’s figures (Q1 – Q3 2023: 113). For Q3 2024, there were 45 administrations, a marginal decrease when compared to the same period last year.
The region remained one of the prominent for administrations outside of London, accounting for more than one in ten cases in the country (12.4%). The most impacted sectors in the Midlands have been industrial manufacturing with 24 administrations, building & construction (20 administrations), and retail (13 administrations) between Q1 and Q3 2024.
Nationally, there were 1,016 administrations across the UK between January and September 2024, in line with the corresponding figures for last year (January to September 2023 1,013 administrations). The building & construction sector has been the most impacted by administrations nationally since the start of the year with 147 cases, followed by business services (130 administrations), industrial manufacturing (119 administrations) and retail (93 administrations). Together these sectors account for almost half (48.3%) of total administrations in the UK economy.
Commenting on the figures, Chris Pole, Managing Director and Head of the Midlands team at Interpath Advisory, said: “The Midlands is on track to surpass last year’s rate of administrations. Despite some improving economic metrics, these figures lay bare the fragility that persists in the economy and challenges that still face business leaders in maintaining solvency, let alone consider growth opportunities.
“The picture on the ground here in the Midlands is similar to what we’re seeing on a national level. There’s a stubborn volume of administrations across the country, but also there’s a clear profile of the type of businesses in distress taking shape.
“Those in the construction sector have really suffered so far this year as they navigate the impact of such a sustained period of price inflation and square that with the prevalence of fixed price contracts across the sector. Meanwhile, as the figures show for the Midlands, industrial manufacturing and retail are also heavily represented in the figures on a national level.
“Looking ahead, we expect administrations to push further beyond last year’s figures come December as some businesses struggle to respond to market conditions, but also as others find the pressure of growth too much to bear.
“Whatever position they are in, business leaders will be looking to the Budget at the end of this month for some stability and visibility so they can make better, more informed decisions to guide their organisations solvently through this fragile economic period.”
