Fifth of manufacturing firms face insolvency risk

A FIFTH of Yorkshire and the Humber’s 9,519 manufacturing firms have a higher than normal risk of insolvency in the next year, according to the latest research by R3.

The insolvency trade body added that the figures show that the region’s manufacturing sector is slightly healthier than the national picture. Nationally, 22 per cent (101,289) of manufacturers having the same level of risk.

“Manufacturing remains the engine house of the British economy and one of the key sectors in the region,” said William Ballmann, chair of R3 in Yorkshire and partner at Gateley. “Recent reports have suggested a more positive trend for the sector with increased output and orders in the last quarter and fairly optimistic forecasts going forward.

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“Manufacturers in Yorkshire and the Humber have shown tremendous resilience in recent years and are performing well compared to other regions, but it is important not to be complacent despite some positive signs.

“Many firms will have used up contingency funds during the recession and will face challenges during the recovery. Like other businesses, manufacturers will be hoping the recent economic upswing does not peter out.”

Mr Ballman said many manufacturers have used the downturn to cut unnecessary costs and make their operations more efficient.

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