The latest information on company insolvencies in England and Wales from the Office for National Statistics (ONS) showed that, during a time of persistently high energy prices, more than one in ten businesses overall reported a “moderate-to-severe risk of insolvency” in August.
The number of insolvencies has been on the rise since last year. During 2020 and in Q1 2021 many firms that would otherwise have failed were kept afloat by government support measures such as the furlough scheme.
In Q2 2022 the total number of insolvent companies was 5,629, the highest level since Q3 2009.
The category of ‘printing and reproduction of recorded media, accounted for around 10% of insolvencies in the manufacturing industry in H1. In Q2 49 printing firms went bust, the highest level since Q3 2013.
Only metal products manufacturing was higher, with 55.
ONS singled out print due to the sector being reasonably energy-intensive.
The ONS stated: “The composition of fuel use in this division has changed significantly since 1990. The division's use of hydrocarbon fuels is only a fraction of what it was in 2005; however, it remains reasonably energy intensive.
“Gas has maintained its dominance in printing and reproduction of recorded media, making businesses within the division vulnerable to a period of persistently high gas prices; the remaining energy consumption for the division is primarily accounted for by diesel.”
The ONS stats show that the rise in insolvencies overall has been driven by Creditors’ Voluntary Liquidations, which made up 89% of the total. CVLs are typically used by SMEs to wind up a company voluntarily.
Notable printing industry closures in the first half of the year included the sad end for historic Sunderland business Edwardthompson after 155 years in print, the dramatic collapse of YM Group’s web offset businesses, and the administration of Bootle label printer Parkers where the strike at UPM contributed to its demise.
