Already more than 1,000 construction companies bankrupt this year

In the construction sector, more than 1,000 companies have already been declared bankrupt this year, from January to May. The number of bankruptcies in the logistics sector (transport and storage) is also at record levels. That show figures from the Belgian statistical office Statbel.

During the first five months of this year, precisely 1,094 construction companies went bankrupt in Belgium. The number of bankruptcies is almost one-fifth higher than the previous record – 906 business failures from January to May 2023.

"Major reasons for the high figures are last year's sharp rise in mortgage rates, high - but stabilising - construction material prices, exceptionally high wage indexation in 2023 and the very limited measures for demolition and reconstruction," stated the Bouwunie, the Flemish federation of construction SMEs, recently concerning the many bankruptcies in the sector.

The Bouwunie’s managing director Jean-Pierre Waeytens called for, among other things, a VAT rate of 6 per cent for demolition and reconstruction, and a tax advantage for builders and renovators.

Construction is the hardest-hit sector in the country. There were however also just over 1,000 bankruptcies recorded in the trade sector, and about 850 in the hotel and catering industry. The logistics sector (transport and storage) also has 10 per cent more bankruptcies than its previous record, in 2023, with 302 business failures in five months.

Across Belgium, 4,727 companies went bankrupt from January to May. This left almost 15,000 jobs at risk. April stands out, with over 5,100 jobs lost. That has much to do with the bankruptcy of vehicle manufacturer Van Hool, in which more than 2,000 jobs were lost.

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