Finland's construction sector on track for worst year since 2003

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Finland's construction sector on track for worst year since 2003

Last week, Helsingin Sanomat highlighted that the monthly number of bankruptcy petitions has been as high just seven times since 2003, with the record of 53 happening in February 2009.

Between January and August, bankruptcy proceedings have been instituted against 294 construction companies, leaving the sector on track to experience its worst year since the early 2010s.

The difficulties in building construction have also led to staffing agencies providing workers for the sector. Selekta Rakennus, for example, reported last week it has entered corporate restructuring after experiencing its revenue decrease in the first six months of the year due to the construction slowdown, with no indications of a quick recovery on the horizon.

The staffing agency said it expects to report around 4.5 million in annual revenue, a drop of nearly six million from 2022.

Statistics Finland released on Wednesday that the number of new bankruptcy proceedings across sectors rose by more than 20 percent year-on-year to 283 in August, marking a new record since the eurozone crisis of 2013-2014.