Friday, September 24, 2021

Insolvency risk slowing for Yorkshire manufacturing sector

Manufacturing companies in Yorkshire at a higher than normal risk of insolvency showed only a slight increase this April – the lowest month on month increase for a year.

According to R3, there was a rise of just 2.5% in levels of manufacturing companies in Yorkshire at higher than normal risk of failure this April –  a marked fall since the March figures which saw an increase of 4.1% since the previous month.

In April, 34.8% of businesses in the sector, representing 5,077 of the 14,571 active manufacturing businesses in the region were in the overall negative band.

Levels of risk in Yorkshire manufacturing were similar to the UK-wide figure of 33.8%. The worst performing of the 12 regions surveyed was Wales with 37.9% of manufacturing companies at higher than normal risk, while Northern Ireland put in the strongest performance with just 30.4% in the higher risk category.

Overall, Yorkshire showed that in almost every sector tracked by R3, the month on month rise in the negative risk band was significantly lower than in the previous month.

“Over the last 11 months, we have seen a worrying increase in levels of insolvency risk across many sectors throughout the UK amid consumer concerns about inflation and business uncertainty about Brexit,” said Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds.

“This month’s figures show a slightly more positive outlook with signs of distress appearing to steady although we are far from being out of the woods yet.

“While levels of business in the higher risk band have continued to creep up, we have not seen the significant jumps that marked previous months.

“As well as a slightly brighter outlook for the manufacturing sector, hotels, construction and agricultural businesses in the region also saw smaller increases in their risk bands than in previous months in 2018.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemichaving a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £31.50 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.




Latest news

Related news

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close