Member Article

Yorkshire manufacturers at low risk of insolvency as industry strengthens

Yorkshire manufacturers are continuing to lead the way, once again putting in a stronger performance than any other region, according to research by insolvency trade body R3.

The latest figures for March 2015 reveal that only 20.9% of manufacturing firms in Yorkshire have a higher than normal risk of insolvency, the smallest proportion of any of the 12 regions surveyed across England, Wales, Scotland and Northern Ireland.

This compares with a UK average of 23.4% of manufacturers at higher than normal risk of insolvency, with London showing the most manufacturing firms at risk (30.4%), followed by the South East (24.5%) and Wales (24%).

Yorkshire also saw a slight decrease in the proportion of high risk businesses in the sector since the previous month, with 874 firms identified as being at higher than normal risk in March out of 11,710 active manufacturing companies in the region.

R3 uses research compiled from Bureau van Dijk’s ‘Fame’ database of company information to track the number of businesses in key regional sectors that have a heightened risk of entering insolvency in the next year.

William Ballmann, chair of R3 in Yorkshire and partner at national law firm Gateley LLP, said: “After a fairly strong recovery in 2014, British manufacturing suffered a year-end dip, but now seems to be back on track with output rising to a seven month high in February, fuelled by domestic demand.

“It is reassuring to see that Yorkshire is once again leading the way, putting in the strongest performance in March.

“The Leeds City Region is the largest manufacturing centre in the country and its continued success is vital for employment here.

“While the economic signs are largely positive, the strength of the pound against the single currency is making British goods less attractive in the eurozone and the fast approaching General Election may also cause a slowdown as the outcome is awaited.

“As ever, businesses should proceed with caution and seek expert advice at the first signs of trouble.”

This was posted in Bdaily's Members' News section by Ellen Forster .