8th November 2018
The bright outlook presented in May has proven true but clouds are quickly gathering on the horizon. In an increasingly uncertain environment, there is no room for policy mistakes.
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26th February 2019
After nearly a decade of annual improvements, 2019 is expected to mark the first year of insolvency growth since the crisis.
21st February 2019
As many building materials are imported from the EU tariffs or limits on quantities imported after Brexit could lead to higher costs and material shortage.
The construction materials subsector clearly benefits from increased building material prices, and elevated costs are expected to persist throughout 2019.
The payment duration in the industry has increased to 70 days on average, and the payment experience over the past two years has been rather bad.
Many smaller construction companies have weak equity ratios and limited financial scope, which makes them vulnerable to payment delays and defaults.
Competition in the Swedish construction sector is high and consolidation is ongoing, with financially stronger groups buying financially weaker peers.
The insolvency level is high compared to other industries, and after increasing in 2018 business failures are expected rise further in H1 of 2019.
Payment behaviour in the construction industry slowly deteriorated in 2017 and 2018, and this negative trend is expected to continue in the coming months.
The overall indebtedness of many Belgian construction businesses is still high, while banks remain rather unwilling to provide credit to the industry.
Besides the low spending capacity, ongoing tight lending conditions set by banks remain one of the main reasons for the subdued sector performance.