Manufacturing performs well amid Brexit fears
THE region’s manufacturing businesses have shown resilience in August despite uncertainty surrounding Brexit, new research reveals.
The region has the lowest proportion of manufacturers at higher than normal risk of insolvency in Great Britain.
Research by insolvency trade body R3, shows that of the 12,187 active businesses in the sector in Yorkshire, just 2,253 or 18.5% were identified as being at higher than normal risk. The only region which put in a stronger performance was Northern Ireland with 18.2%, while the average across the UK was 21.5%.
Looking at Yorkshire’s performance in other sectors, construction showed continued recovery with 25.6% of businesses at higher than normal risk compared with 27.1% nationwide; and hotels in the region were also among the best performing with just 17.9%, significantly better than the UK average of 19.8%. Agriculture also continued to do well at 16.8% compared with 19% across the 12 regions.
However, pubs (24.5% at higher than normal risk in Yorkshire); restaurants (28.7%); transport (41.7%) and retail (26.6%) struggled in the face of tough conditions.
Adrian Berry, chairman of R3 in Yorkshire and restructuring partner at Deloitte, said: “Manufacturing is, of course, a vital industry for driving economic growth and in the run up to the referendum, the sector was stable with output continuing to expand in the second quarter.
“It is reassuring to see that despite the economic turmoil which followed the surprise result on June 23rd, Yorkshire businesses are putting up a strong fight with just 22.6% of businesses across the ten sectors surveyed considered to be at higher than normal risk of insolvency this month, lower than the UK average of 23.8%.
“Unfortunately, the period of uncertainty now facing businesses may cause problems and we urge those in distress to seek informed, professional advice as soon as possible to help them to navigate this difficult transition.”
