Construction and manufacturing shrug off Brexit fears
The construction sectors in the East and West Midlands were the most stable in the UK in September, according to new research.
The two areas topped the list of 12 regions surveyed nationwide by insolvency trade body R3.
Using Bureau Van Dijk’s Fame database, R3 found that the East Midlands had the lowest proportion of construction businesses at higher than normal risk of insolvency at 25.9%, with the West Midlands standing only marginally above at 26%. This compares with a UK average of 27.6%.
The outlook is also encouraging for manufacturers in both the East and West Midlands, with the regions’ manufacturing sectors performing better than the majority across the UK.
The proportion of East Midlands manufacturers at higher than normal risk of insolvency in September was 19.9%; in the West Midlands it was slightly lower at 19.5%.
Only Yorkshire and Northern Ireland’s manufacturing businesses had a lower risk of insolvency, at 18.7% and 18.2% respectively.
R3 Midlands chairman Chris Radford, a partner at law form Gateley in Birmingham, said: “It is encouraging to see that, despite initial deep concerns post-EU Referendum, confidence is starting to return to the local manufacturing and construction sectors.
“Without doubt, there are now fresh opportunities to be seized, but while new trade links are established and current ones built on, the importance of sound strategic planning should never be overlooked.
“It is also crucial for all business owners to monitor finances carefully. If cash flow becomes a major issue, professional advice should be sought before it is too late.”