Navigating Insolvencies in 2024
Part 10 : Concluding remarks – Navigating Insolvencies in 2024
Roch Simard, MBAAU Group Canada |
About this virtual conference
On March 20, 2024, we hosted a virtual conference focused on navigating insolvencies in the coming year, presented to the Business Development Bank of Canada (BDC). In this insightful session, I had the privilege of interviewing Mr. Maxime Lemerle, the Lead Analyst for Insolvency Research at Allianz-Trade, as we explored the resilience of Canadian entrepreneurs in the aftermath of COVID-19.
The virtual conference, held on March 20, 2024, and presented to the Business Development Bank of Canada (BDC), focused on navigating the landscape of insolvencies in the coming year. Key insights were shared by Mr. Maxime Lemerle, Lead Analyst for Insolvency Research at Allianz-Trade, highlighting the challenges and strategies for Canadian entrepreneurs in the post-COVID-19 era.
There was a significant uptick in business insolvencies, marking a 41% increase. This rise was broad-based across regions, with notable increases in Quebec, Ontario, British Columbia, and Alberta.
The forecast indicates a continuation of rising insolvency cases, with expectations set at a 15-year record high in 2024. The trends suggest a notable impact from economic conditions, including GDP growth and financial conditions.
The global outlook mirrors Canada’s situation, with a broad-based increase in insolvencies expected across most advanced economies. This presents dual risks for Canadian firms: non-payment risk for exporters and supply chain disruptions for importers.
Key challenges identified for 2024 include a profitability squeeze, rising uncertainty, and tightening financing conditions. Strategies to mitigate these impacts involve diversification, proactive risk management, and leveraging trade credit insurance.
Special attention was given to the U.S. and other key export markets. The expectation of increased insolvencies in these regions underscores the importance of strategic planning for Canadian entrepreneurs looking abroad.
The discussion highlighted the critical role of macro-level indicators and individual performance metrics in assessing insolvency risk. Advances in AI and machine learning are revolutionizing the prediction of insolvencies, offering new tools for strategic planning.
The virtual conference offered comprehensive insights into the insolvency landscape facing Canadian entrepreneurs in the coming years. With detailed analyses from Maxime Lemerle, participants gained a deeper understanding of the challenges and strategies essential for navigating these uncertain times. The insights shared underscore the importance of preparedness, strategic planning, and adaptability as key components for success in the evolving economic landscape.
This insightful session is part of our ongoing commitment to providing valuable perspectives that can help entrepreneurs and business leaders strategize for the future. For those who missed the earlier sessions, we invite you to review the conference materials available on our website for a comprehensive understanding of this evolving landscape.
For those looking for further details or who have additional questions, Jocelyn St-Onge from Allianz-Trade Canada and I, Roch Simard, are readily available as resources to assist you.
We extend our gratitude to Maxime Lemerle for his expert analysis, to Véronik Ménard and her team at the BDC for facilitating this important discussion, and to all the participants who joined us for this conference. It’s through these collaborative efforts that we can equip ourselves with the knowledge and tools needed to thrive in the evolving business landscape of 2024 and beyond.