West Midlands ahead of the pack when it comes to manufacturing & construction
THE West Midlands is leading the rest of the UK in two key business sectors, insolvency body R3 has said.
Latest figures compiled by the body’s Midlands branch, using Bureau Van Dijk’s ‘Fame’ database, show the West Midlands manufacturing and construction sectors are more financially stable than many of their UK peers, with around one in five [18%] and one in four [25%] respectively having an above normal insolvency risk, both below the UK average.
R3 Midlands Chairman Richard Philpott, a partner at KPMG in Birmingham, said: “Looking at how each of the West Midlands business sectors has performed in recent months, it is evident that the region is becoming more resilient to economic factors. For many, there are now sound opportunities for greater stability and growth.
“I do have a word of warning, however. Whilst insolvency risk in these sectors is lower than most other regions, there are still many businesses, particularly in construction and manufacturing, which are having financial difficulties.
“Latest R3 figures also show that January is a testing time for many struggling businesses, with a rise in the number of companies moving from the ‘caution’ band into the ‘high risk’ zone in the past month.”
He said if a business was continuing to struggle, then it was crucial for directors to avoid ignoring the obvious and to seek professional advice before it is too late.
“For those able to embrace the growth that should come with improved economic conditions, a close eye must be kept on cash flow. There is often a temptation to over trade at this time, which can be the downfall of many a recovering business,” he added.
