Companies of what industries were more likely to go bankrupt in 2021?

The past year showed a relatively modest increase in bankruptcies compared to its predecessor, but in spite of this, there are industries that showed a sharp increase in bankruptcies.  Among the reasons, there are restrictions due to the coronavirus, as well as an increase in the cost of raw materials.

In percentage terms, the number of bankruptcies in 2021 exceeded the same indicator in 2020 by 3.4%.  At the same time, in 2020, there was a government moratorium on initiating insolvency proceedings for companies of industries that were the most affected by the coronavirus pandemic.

Experts attribute relatively low increase in the number of bankruptcies to the increased level of income of companies compared to 2020.

In the first nine months of 2021 alone, almost 3 times more was earned than in the same period of 2020.

However, there is a number of areas where there has been a massive increase in insolvencies.  Among them there are the sphere of transport and construction, as well as the machine-building complex and the manufacturing industry.

The highest rate (18%) was recorded among carriers.

According to experts, this is due to the covid restrictions, which primarily affected intercity transportation, as well as the local taxi fleets, RBC reports. The situation in mechanical engineering and construction, in turn, was caused by rising prices for materials, as well as a decrease in demand for products.