Home Business Top 10 industries with the biggest decrease in insolvencies
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Top 10 industries with the biggest decrease in insolvencies

by jcp
Rank Industry 2016 Insolvencies 2020 Insolvencies Five Year Change
1 Mining and Quarrying 52 18 -66.8%
2 Administrative and Support Service Activities 3219 1441 -60.4%
3 Water Supply; Sewerage, Waste Management and Remediation Activities 131 78 -45.4%
4 Construction 2546 2051 -30.8%
5 Information and Communication 879 688 -28.2%
6 Wholesale and Retail Trade; Repair Of Motor Vehicles and Motorcycles 2046 1673 -21.9%
7 Professional, Scientific and Technical Activities 1200 999 -18.4%
8 Education 170 151 -17.4%
9 Manufacturing 1346 1162 -16.5%
10 Real Estate Activities 372 351 -16.1%

 

In the majority of cases, insolvencies in the UK have actually declined since 2016. Perhaps most notably, the industry which saw its insolvency rate fall the most was mining and quarrying, where the rate has dropped by two-thirds, from 43.2 per 1,000 businesses in 2016 to 14.3 in 2020. However, this was also the industry that actually had the highest insolvency rate in 2020.

Administrative and support service activities (which includes things like rental and leasing activities, travel agencies and security services) also saw a significant drop (-60.4%) as did water supply (-45.4%). However, such high decreases are likely to be due to the extensive rollout of government business support over the last year.

The 5 industries with an increase in insolvencies

 

Rank Industry 2016 Insolvencies 2020 Insolvencies Five Year Change
1 Arts, Entertainment and Recreation 219 285 18.1%
2 Other Service Activities 556 596 6.1%
3 Accommodation and Food Service Activities 1529 1705 2.1%
4 Financial and Insurance Activities 272 323 0.4%
5 Public Administration and Defence; Compulsory Social Security 10 11 0.2%

 

There were five sectors that saw an increase in insolvencies, the most notable of which was arts, entertainment and recreation, which saw the rate of insolvencies jump from 3.5 per 1,000 businesses in 2016 to 4.2 in 2020, an increase of 18%.

 

Other service activities saw an increase of 6.1%, with the insolvency rate for accommodation and food service activities increasing by 2.1%.

You may also like