Over 2,000 bankruptcies in the building sector in 2014
Tuesday, 24 February 2015
The construction industry registered 2,036 bankruptcies in 2014, which represents nearly a fifth of the 11,294 reported bankruptcies in Belgium, according to the Atradius Credit Insurance’s Market Monitor published on Tuesday, 2 days before the opening of Batibouw trade fair. According to the Construction confederation, 2,057 bankruptcies were registered in the building sector between December 2012 and November 2013.
“Since mid-2012, the Belgian construction industry is going through a rough patch, and there is no light at the end of the tunnel for now,” points out Christophe Cherry Belgium & Luxemburg Country Director Belgium Luxemburg for Atradius. “Banks remain wary of giving loans to builders and general demand has weakened. In the short term, the only positive note is struck by residential buildings, which are still temporarily benefiting from households wishing to take advantage of the former housing bonus.”
Market Monitor also shows that more and more buyers unilaterally delay payment to within 90 days end of month.
Difficult market conditions impact profit margins, regrets the Construction confederation. “Extra energy legislation, fewer tax breaks, credit restrictions, all result in an increase in demand for smaller and cheaper options. This evolution of clients’ wishes affects housing construction, even if population growth and low interest rates give the sector a boost.”