The insolvency ranking clearly shows Vienna in the top spot in terms of open insolvency proceedings, while Tirol has the least amount of open insolvencies, closely followed by Salzburg.
Companies belonging to the hospitality sector registered the highest number of insolvencies, while the construction sector achieved a more positive performance in 2014. Despite this, construction companies have the highest average outstanding amount per collection case.
In 2014, the province with the lowest number of insolvency proceedings and collection cases was Tirol, with 0.63% of the local firms affected, and Salzburg is very close behind.
On the other hand, the situation in Vienna was much worse, with almost twice as many insolvencies.
Regarding payment behavior, the most trustworthy companies are situated in Burgenland.
The "Top 3" regions with the highest percentage of companies with debt collection cases are Vienna, followed by Carinthia and Salzburg.
Analizing the market: industry comparison
Comparing construction, retail, and hospitality, traditionally the highest risk industries, the CRIF study showed that the retail sector had the lowest number of insolvencies, with hospitality in second place, while construction had the highest number of insolvencies in 2014.
Moreover, the latest market outlook of the WKO (Austrian Chamber of Commerce) also confirmed that the construction industry is still struggling to react.
Analyzing the number of debt collection cases in the three different industries, the findings showed that the highest number was registered in the hospitality industry, followed by the retail and the construction sectors. Regarding the average amount of individual collection cases, the construction industry is clearly ahead, while the average amount in retail and hospitality is half that of the construction industry.
"We have deliberately focused our analysis on the three industries which tend to have the highest number of defaults. Due to the current restricted economic situation, we have observed only slight improvements; consequently we hope that the government will actively put in place measures in 2015 which could increase household and public sector consumption", said Boris Recsey, CEO of CRIF Austria.
Risk management ensures competitiveness
Suppliers in the construction, retail and hospitality sectors usually have high sales costs and low margins. "The change in external conditions, competition and capital scarcity requires the optimization of risk management processes. By working closely with our customers, we are aware of the importance of tailored solutions based on different industry requirements and risk management processes", concluded Mr. Recsey.
