Member Article

Yorkshire manufacturers above national average for financial stability

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.

R3 adds that these figures, from Bureau van Dijk’s ‘Fame’ database, show that the region’s manufacturing sector is slightly healthier than the national picture with 22% (101,289) of manufacturers having the same level of risk.

Commented William Ballmann, chair of R3 in Yorkshire and partner at national law firm Gateley LLP: “Manufacturing remains the engine house of the British economy and one of the key sectors in the region.

“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.”

He added that 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.

Ballman continued: 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.“

He concluded: “Although the recession presented challenges, many manufacturers have used the downturn to cut unnecessary costs and make their operations more efficient, access to capital and the need for investment remains vital to the future success of the sector.

“Cash flow is likely to remain an issue as firms are tempted to take advantage of new opportunities, but risk over stretching themselves.

“Still, the performance of the region’s manufacturers, compared to the rest of the UK, is encouraging. As ever, for struggling firms, the advice is to undertake careful financial planning and seek expert help.”

This was posted in Bdaily's Members' News section by Mark Lane .