Manufacturing, Construction Insolvencies Spike Across Australia

Australia’s secondary industries are bearing the brunt of inflationary pressures as business failures spike in the face of a nationwide cost-of living crisis.  According to data compiled by the Australian Securities and Investments Commission (ASIC), manufacturing and building company insolvencies surged in the first six months of FY 2023-24 due to the steep cost of raw materials and electricity, coupled with labour shortages. ASIC’s data reveals a total of 1,391 reported construction insolvencies in the first half of FY 2023-24, a figure that already equates to 62.9 percent of the 2,213 insolvencies recorded throughout the previous financial year.  Failures in manufacturing have also risen alongside prices, with a total of 458 insolvencies reported in FY 2022-23, a 153 percent increase from the previous year. About 243 manufacturing insolvencies have been filed throughout the first 6 months of FY 2023-24. ...