Sharp increase in bankruptcies – E24

Sharp increase in bankruptcies – E24

The construction industry was particularly hit by a wave of bankruptcies in 2023.

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A total of 4,517 bankruptcies were opened last year. This will be 22 percent more than in 2022, according to Statistics Norway.

Statistics Norway's Division Manager Erik Fjærli points out that this is an increase from a low level.

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– This is a sharp increase, but from a low level. The number of bankruptcies is still lower than before the pandemic, he says in a press release.

The construction industry has been hit hard

Many have long warned that companies should announce tenders, with multiple interest rate hikes and cost pictures that offer tough assumptions.

A warning has been given especially in the construction sector. The start of new house building has practically stopped, and material costs have risen.

This clearly shows in the statistics. 41 percent of the insolvent firms operated in the building and construction industry.

Stans: Fewer start-ups means you'll see fewer projects like this in Ulven in Oslo in the coming years.

E24 has previously noted several bankruptcies in the industry. Several companies say they are seeking tenders as work has dried up.

The contracting firm Eide announced the tender earlier in January. They chose it as a result of the equity being eaten up in the last year.

Cabin developer Drømmehytta has gone bankrupt due to what it describes as a “completely failed market”.

The National Association of Home Builders believes you have to go back several decades to find a time when the Norwegian construction industry performed poorly. There are no new project launches yet, and the union expects more layoffs and layoffs.

The largest increase is in the north

In the fourth quarter, there were 1,186 bankruptcies nationwide. This is an increase of 18 percent compared to the same period last year.

Figures from Statistics Norway show that bankruptcies for sole proprietors and other companies have increased.

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Nordland and Trøndelag account for the largest percentage increase in bankruptcies, with increases of 44 and 43 percent. There were 218 more bankruptcies in Wigan County. This is a huge increase in absolute numbers.

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Joshi Akinjide

Joshi Akinjide

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