Debt pressures peak: the industries facing the biggest financial concerns this autumn

With recent ONS figures showing that UK debt reached 100% of GDP, the highest level since 1961. New research has revealed which industries are facing the biggest debt concerns this autumn.

As we enter the colder, quieter months of the year many businesses are facing tighter financial margins, with higher energy bills in particular presenting a big challenge. But what impact does this have on firms and their staff?

The business experts at Sopro have analysed ONS data to reveal the industries most impacted by concerns about debt this autumn and offered tips on how businesses can overcome these challenges.

The industries with the biggest debt concerns this autumn:

1. Real estate activities

The real estate activities sector has the highest number of businesses that have low confidence in meeting debt obligations this autumn, at 9.7%. Rising interest rates, economic uncertainty, and increased operating expenses all contribute to the industry’s financial concerns. Due to these circumstances, real estate businesses may have difficulty generating sufficient revenue to meet their financial obligations.

2. Accommodation and food service activities

Accommodation and food services came second, with 8.6% of businesses having low confidence about meeting their debt obligations. This could be due to the colder months signalling the rise of energy consumption and costs. As energy prices rise due to inflation, operational costs will likely soar for businesses in the sector. This can make it challenging for businesses to continue generating enough cash flow to meet their financial needs.

3. Human health and social work activities

In third place is human health and social work activities, where 7.2% of businesses have low confidence in meeting debt obligations this autumn. Labour shortages and rising healthcare demand in the colder months can impact the sector, making it challenging for businesses to confidently meet their financial targets and avoid getting into debt.

Steve Harlow, chief sales officer at Sopro, comments on how businesses can overcome the autumn slump: “The rising cost of business at this time of year can have a significant impact on finances, as well as the ability to innovate and grow. However, innovation and expanding your customer base are key to remaining competitive and achieving long-term business success.

“Businesses can survive the challenging autumn months by tightening their sales and marketing tactics to generate new business, keep customers engaged, and maintain a steady stream of sales to beat the financial downturn.

“Here’s how you can put these tactics into practice:

• Maximise Prospecting Efforts: “It’s wise to ramp up your prospecting and lead generation efforts as we enter the quieter months of the year to identify new potential clients and proactively drum up new business. These tactics employ targeted outbound marketing activities, such as emails, phone calls, and social media messaging.
• Analyse Your Sales Funnel: “Monitoring the success of your prospecting and lead generation efforts enables you to make swift adjustments for the best chance of successful conversions. Regularly evaluate your leads and customer experience to identify areas for improvement and modify your strategy accordingly.
• Adapt: “Embrace the seasonal shift and use it to your advantage, incorporating seasonal messaging and deals into your marketing and sales efforts to bolster interest.

“By fine tuning these tactics, you can draw in more customers and maintain stability, allowing you to navigate the autumn season with more confidence and success.”