(The online newspaper): – We are now in the middle of a declared crisis. Higher costs and falling demand create an unpredictable market. Growth in the economy is slowing and negative growth is expected in the first quarter of this year. This in turn leads to redundancies, dismissals and, in the worst case, bankruptcies, says CEO of BDO Norway, Martin Aasen, to Nettavisen.
Figures BDO has obtained via Norstat show that many companies, especially in the construction industry, are afraid of layoffs, dismissals and bankruptcies. There are 600 company managers who responded to the survey.
The findings say, among other things, that one in four company managers are concerned about dismissals or redundancies in 2024. This is a sharp increase from last year’s survey, when ten percent expected the number of employees to decrease.
– This is a disturbing development and more and more customers are contacting us to handle demanding challenges, says Aasen.
BDO’s survey also shows that concern about going bankrupt is increasing among companies. Especially among the smallest companies, where the proportion has increased from nine per cent to 18 per cent.
– Industries such as property, construction and the service and tourism industry are particularly hard hit. In addition, a demanding winter is expected for the trade industry, where many are now struggling with a lack of visitors and large inventories, says the BDO director.
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– Several members in bankruptcy negotiations
Considering the industries that Aasen mentions, it is natural to think that companies that have to do with housing construction are struggling. Managing director of Boligprodukterene, Lars Jacob Hiim, confirms that many of the companies are concerned. Still, they haven’t seen that many bankruptcies yet.
– We hear about the weak market and that some companies have to downsize. We have hardly spoken to anyone who hasn’t. I have spoken to members who are in bankruptcy negotiations, but there are not very many who are there yet, says Hiim to Nettavisen.
– What do you think about the fact that 18 percent of companies fear bankruptcy in the next year?
– It is a large proportion, and it is worrying. I hope 2024 will not be so tough, but companies have to make tough priorities in order to survive in a market that is going very badly. Let’s hope it turns around.
He points out that there is something that the housing manufacturers can assist with to help companies that are struggling financially. Among other things, the framework conditions are something they are actively working on.
Hiim hopes that companies will use Husbanken much more actively. Husbanken aims to help the most disadvantaged companies on the market, and manages housing benefit, grants and loans.
– Husbanken and its members have announced a record search for applications for support, which can ensure a bottom line of activity, says Hiim.
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BDO’s advice for businesses
In BDO’s survey, they have also mapped what worries business managers the most.
Here are the main concerns:
- Increased production costs – 61 percent
- High interest costs – 57 percent
- Declining demand – 55 percent
- High electricity/energy prices – 55 per cent
The company also offers more advice to companies in a time of high costs.
– Better impact assessments appear to be one of the most important measures to improve the conditions for business, says Aasen.
In addition, BDO offers the following advice:
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Show action. Renegotiate agreements, have control over accounts and liquidity, be cynical about what the business should prioritize.
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See solutions. Many managers will for the first time lay off and dismiss employees. Are there other possibilities? Could it be relevant for your company to have six-hour days or four-day weeks for a period?
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Communicate. Make employees understand the situation. Build a sense of community and cohesion.
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Cut costs. It may hurt, but you have to prioritize your business first.
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Don’t bury your head in the sand. Take action before it’s too late!
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2024-02-14 21:38:42
#Full #bankruptcy #alert #Disturbing
