The number of transportation and storage businesses that have failed since Covid-19 hit the UK has risen by 14%, according to a study by the School of Marketing.
The research analysed the latest ONS and government data on the number of businesses that were launched and the number that have failed in the eight quarters after the pandemic and compared this with the eight quarters before the pandemic, to see how each industry has been affected in the last two years.
Of the 16 sectors analysed, transportation and storage was rated eighth in terms of its performance. The research showed that, pre-pandemic, for every 100 businesses born in the industry, there were 78 failures, compared to 89 failures in the period after the pandemic.
The study found that of the 16 sectors analysed the information and communication industry was the worst affected.
Pre-pandemic, for every 100 businesses born in the industry, 91.51 businesses died. This number had increased by 89% post-pandemic with 173.24 business deaths for 100 new ones.
Finance and insurance was the industry second-worst affected by the pandemic. Pre-Covid, there were roughly 48.01 business failures for every 100 new start-ups.
Post-pandemic, this number had increased by 50%, with an average of 71.95 deaths for every 100 business births in the industry.
In comparison the wholesale industry has prospered post-pandemic when compared with the others sectors studied.
Pre-pandemic, for every 100 wholesale businesses born, 101.5 businesses died. This result decreased by 20% post-pandemic, where in the last eight business quarters, only 81.44 businesses have failed for every 100 wholesale businesses born.
Businesses in retail were found to be the next most successful after the impact of the pandemic. Pre-pandemic there were on average 79.75 business failures for every 100 business launches, and this number has dropped 12% post-pandemic with roughly 69.94 businesses failing for every 100 births since the second quarter of 2020.
The study also revealed in the pre-pandemic period, from April 2018 up to March 2020, on average 86.58 businesses died for every 100 that were born.
Post-pandemic this number has increased by 16%, with current figures showing that for every 100 new businesses, roughly 100.67 have failed, making the average number of business births and deaths almost equal since the pandemic began.
Commenting on the findings, Ritchie Mehta, chief executive of the School of Marketing said: “This data shows how much more difficult it has become to survive as a business since the pandemic.
“In the two years before the impact of Covid-19 on average more businesses were created than closed each quarter, but now the numbers of company births and deaths are basically equal.
“As entrepreneurs look to protect themselves against a harsher business environment, the value of skilled employees has never been higher.
“Therefore SMEs can take advantage of initiatives such as the Apprenticeship Levy scheme to bring in new staff or train current ones in digital and data-led programmes, with the vast majority of the training cost covered by the levy.”
