18 Gladstone businesses at risk of insolvency this year

DESPITE a new report finding insolvency risk is on the rise in Gladstone, some industries and businesses have reported a positive turn in recent months.

NOT ALL BAD NEWS: A new report shows some Gladstone industries are doing extremely well. Picture: Mike Richards GLA170215GCBD

DESPITE a new report finding insolvency risk is on the rise in Gladstone, some industries and businesses have reported a positive turn in recent months.

The SV Partners Commercial Risk Outlook Report for August found 2.4 per cent of Gladstone businesses, or 18 businesses, are at a high to severe risk of failure within the next 12 months, up from 1.9 per cent in the March report.

The level of risk is comparable to Rockhampton, where 23 (or 2.3 per cent of) businesses are at high to severe risk of failure.

SV Partners associate director Frank O'Neill said some local businesses had recently missed out on council projects, including the supply and delivery of water trucks for council and sewer and stormwater pipe relining.

"The council is still tendering out work worth millions of dollars which should positively impact the local community," said Mr O'Neill.

"Twelve industries have no local businesses at high to severe risk of insolvency, which shows that there are some really prudent operators in Gladstone."

He said the report found there were still reasons to be positive about the Gladstone region.

Some of the industries with no businesses in the high-risk category were the accommodation sector, health care and social assistance, electricity services, education, training, agriculture and fishing.

Gladstone City Central Apartments general manager Don McLeod said a new sense of optimism amongst Gladstone's major industries had benefited the accommodation sector. "There's been an uptake in bookings, it is on the turn compared to six months ago," Mr McLeod said.

He pointed to the new container service arriving at the Port of Gladstone fortnightly as one positive example of good changes in the region.

"Local events also help our occupancy," he said.

"We had a few bookings for people attending Legends of League earlier this month and for the Variety Bash."

The report

Industry vs commercial risk in Gladstone:

Construction:

High risk: 5.2%

Medium risk: 20.7%

Real estate services:

High risk: 7.4%

Medium risk: 18.5%

Support services:

High risk: 5.9%

Medium risk: 23.5%

Manufacturing:

High risk: 2.6%

Medium risk: 15.8%

Health care and social assistance:

High risk: 0%

Medium risk: 20.5%

Retail trade:

High risk: 0%

Medium risk: 20.7%