Yorkshire’s transport and haulage sector on the road to recovery

Although the transport and haulage sector in Yorkshire continues to struggle, according to the latest research by R3, the insolvency trade body, there are indications that suggest a recovery is occurring.

Previously among the poorest performing sectors in Yorkshire and the Humber, with almost 30% of the 3,068 transport and haulage businesses considered to have a higher than normal risk of insolvency, this figure has fallen by 4% in the proportion of businesses in danger since the previous month.

Furthermore, this sector in Yorkshire and the Humber is significantly better than the UK as whole, which saw 35% of transport and haulage businesses at higher than normal risk this month, a fall of less than 1% since March.

In April, 13,038 of the UK’s 37,611 transport and haulage firms had a higher than normal risk of insolvency.

In addition, transport and haulage was one of only two sectors in Yorkshire and the Humber which saw a fall in insolvency risk month on month, the other being technology and IT.

Overall, the the region is vastly improving as every sector, apart from pubs, is scoring better than the UK average.

William Ballmann, chair of R3 in Yorkshire and partner at national law firm Gateley LLP, said: “Generally, the transport and haulage sector tends to reflect the state of the economy and is a good indicator of manufacturing and retail activity.

“While we saw signs of increased confidence last year with hopes that the recovery would drive demand for logistics services, the benefits have been slow to be felt. However, falling oil prices have provided a welcome boost to the sector and those businesses that have survived the tough challenges of the last six years, are now in a strong position to take advantage of the upturn.

He added: “It is encouraging to see that overall the region is performing more strongly than many other parts of the UK with sectors such as technology and IT, manufacturing, professional services, construction and retail remaining steady.”

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