There’s been an uptick in the number of manufacturing companies entering insolvency, according to new research from accountancy Moore.
The firm found that in the last year, there has been a 7% rise to 1,466 in manufacturing companies entering insolvency – a five-year high.
The research identified that this was driven partly by uncertainty surrounded Brexit coupled with a broader slowdown across the continent.
“The latest figures show that the doom and gloom around the UK’s manufacturing sector continues,” said Robert Branch from Moore.
“UK manufacturers should be going through a period of heavy investment in order to close their productivity gap with competitors in places like Germany.
“Instead many are having to save as much cash as they can to tide them through until order books recover, as banks and other finance houses are indicating that they will be reluctant to provide additional funding to support working capital.”