Bankruptcy alerts see spike

THE DATA compiled by Resilinc’s EventWatchAI monitoring database shows that there were 3,821 disruption alerts recorded across all the industries and risk events Resilinc monitors for, up 8% quarter-on-quarter (QoQ) compared to Q4 of 2022. 

Compared to data from the same quarter in 2022, global bankruptcy alerts increased by 240% in Q1 2023, with corporate restructuring events rising by 135%.

The significant increase in these financial alerts is reflected in the continued rise of UK insolvencies which reached a 13-year high last quarter, and is set to remain a prominent cause of disruption in future.

Airport disruptions

Other notable Q1 trends include an increase in airport disruptions, up 86% QoQ. This was largely caused by labour strikes as well as worker shortages. Most recently, around 1,400 Heathrow Airport security staff at Terminal 5 commenced strike action over the Easter break, impacting cargo handling and leading to further supply delays. 

In total, there were 313 labour disruptions reported globally this quarter, a rise of 24% QoQ and a 107% increase compared to Q1 of 2022. Strike action and other labour disruption had hit productivity this quarter, resulting in the UK economy flatlining, with no growth recorded in February as a result.

Extreme weather events also contributed to wider supply chain disruptions as well as airport disruptions: these events were up by 61% compared to Q4 of 2022. 

Finally, alerts for supply shortages were up again, increasing 38% QoQ. For the past few quarters, alerts have decreased, however the recent rise indicates problems stemming from power shortages, raw materials, drug APIs, ongoing semiconductor part shortages, and manufacturing issues.

These supply shortages also impacted factory disruptions which were up 17% QoQ.