Construction Firms Failures Hit A New Peak: There Will Be Consequences...
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- Опубліковано 19 чер 2024
- Last week, yet another building and construction firm hit the wall, collapsing into liquidation owing $5.7m straddling two different states and territories, leading to a “domino effect” impacting 130 projects and 80 staff members.
This is part of the continuing litany of failure, as data from the Australian Securities & Investments Commission (ASIC) shows that a total of 1,245 companies were declared insolvent in May alone.
This is 44% higher than the same period in 2023 and 122% higher than in May 2022. It is also the highest number of insolvencies in a single month since ASIC started reporting this data in 1999. The surge in insolvencies was driven by the construction sector, which recorded 313 insolvencies in May - a record for this cycle.
This is an object lesson for anyone considering contracting with the building and construction firm of any size; do your own due diligence! It also presents another barrier to the Albanese government’s target of building 1.2 million homes in five years-a level of construction that Australia has never achieved before, despite record activity compared with other countries and over 5% of people working in the sector.
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Things have been so bad for so long. Sometimes I wonder why do I even work? After the ATO is done there's little left.
go on the dole and enjoy life! Let the rich pay the poor for a change!
Thankyou for your efforts mate....house prices are going into the stratosphere while builders are going bankrupt.....its nuts!!!
Well said
all by design!
Bad sign for everyone, buckle up it’s getting rocky!
You have it easy, I don't even have a buckle
Ok but millions of 👽🧕🦧👳♂️ heading our way they dont see a problem ?..
Throughout Europe they are experiencing growing deterioration in bank credit quality, weak economic activity, rising interest rates and increasing numbers of corporate bankruptcies. We are seeing similar but prices of houses keep rising and no real sign of job losses. Very confusing at times.
RBA is holding rates. Should be raising them with inflation not moving, however it knows how bad the economy is and is banking on a steeper recession to tackle inflation. Norinchukin Bank in Japan is facing a disaster and selling $63 Billion in US treasuries. Word is they have $800 Billion in CLO from the US and will have to sell up.
Simandou comes online in next few months as well - point is. AUD is trading 10% above where it should be. More inflation.
It’s a bit of worry with China's real-estate debt crisis , Ukraine war , stubborn inflation , interest rates and few other issues wouldn’t take much to push the worlds economy into another financial mess and Australia won’t have China to save it this time
Major builders I deal with in Victoria say they’re looking around a 50-70% reduction in work by Xmas this year
Yep, trending this way in my surveys too...
So this means existing apartment prices will skyrocket even more along with immigration intake and rent prices?
Unless migration gets turned off...
@@WalkTheWorldDFAwe all know that will never happen. Without immigration GDP would reveal we're in a recession.
@@WalkTheWorldDFA Funny.
Good. Awesome for my assets
They won't turn off migration it's all they have left to keep GDP up
Great presentation
Thank you!
Hi Martin! What will builders do if no jobs! Drop the labour cost? What will suppliers do if there is no demand for building materials?
Builders will requalify for other professions Australia has to offer: dog walking, uber eats, janitors in Canberra
Sadly it is always the little people who are the losers 😕😕😕
Yep subbies are right in the cross-hairs now....
Yes construction counts, in more ways than one
Hello Martin 🙂
Unions to blame
Not entirely , workplace delicates miss-informing and supporting a.b.c absolutely
Lazy answer most of Australia’s enjoys benefits unions fought for .
..👽👳♂️🧕🦧 millions heading here they dont see a problem plez explain