Region’s manufacturing and construction businesses remain among the most stable in the UK
West Midlands manufacturing and construction businesses are continuing their financial recovery as new research reveals they are amongst the most stable of their UK regional counterparts.
May figures compiled by insolvency and restructuring body R3’s Midlands branch, using Bureau Van Dijk’s Fame database, show that fewer than one-in-five – 18.5% – manufacturing businesses in the region are at higher than normal risk of insolvency, the lowest percentage in the UK.
This compares positively with February’s figures when 19.6% of manufacturing businesses in the region were at an elevated risk of insolvency, a percentage bettered only by Yorkshire and Northern Ireland.
The West Midlands construction sector is also amongst the UK’s top regional performers, with fewer than one-in-four – 24.3% – businesses currently operating with an above average risk of insolvency, a percentage surpassed only by Wales and Northern Ireland. This is on a par with the sector’s performance in February.
In contrast, the news is less positive for the regional tourism sector, which is struggling more than any of its regional counterparts. Around one-in-three-firms – 30.1% – are at higher than normal risk of insolvency, which is three points above the UK average of 27%.
However, the number of West Midlands tourism businesses with an increased risk of insolvency has fallen since February, when the percentage stood two points higher at 32.1%.
Commenting on the research, R3 Midlands chairman Chris Radford, a partner at the Birmingham office of Gateley, said: “These statistics paint a mixed picture for business recovery in the region. Despite reports of an economic upturn, not all companies are trading profitably, with many burdened by unmanageable debt.
“Often, a business’s struggles are invisible to outside eyes and it is not until a firm is on the brink of insolvency that its owners seek financial advice. The fact is that the sooner a business seeks professional help, the more positive its outlook can be.”
