Wintry weather hits North West SMEs for £778m

SMALL and medium-sized firms (SMEs) across the North West are facing losses of more than £778m as a result of the winter wipeout.

New research from Lloyds TSB Commercial has also shown that 80% of the region’s SMEs have been affected by the freezing conditions.

The additional cost of winter comes at a time when 27 per cent of the North West’s SMEs have reported negative growth in the last financial year.

The research showed that 48% of the 1,000 businesses approached have experienced a direct impact from the bad weather with their premises being closed or cut off.

A similar amount (45%) have suffered indirectly with disrupted supply channels or obstructed delivery routes.

Only 18% of SMEs in the region have been lucky enough to emerge unaffected while 2% were able to take advantage of the conditions and prosper.

Businesses in the North West suffered the most direct impact (48%) alongside Welsh SMEs (59%).

The disruption caused by the harsh winter conditions has had a direct financial impact on the bottom line for 70% of the North West’s SMEs.

Some 43% claim to have taken a hit of up to £10,000 and 20% estimate the cost to have been somewhere between £10,000 and £30,000.
 
John Robson, regional director for Lloyds TSB Commercial in the North and Midlands, said: “Businesses in the North West have faced a double blow over the past few months.

“They have had to grapple with the downturn in trade as a result of the recession, as well as the impact of the severe weather conditions.

“The combined impact of both the recession and winter will inevitably have caused cash flow problems for many businesses.

“There are steps firms in the North West can take to get back on their feet quickly.

“If travel is impossible due to the adverse weather, online banking can help businesses keep on top of their finances.

“Investing in the appropriate technology can also help businesses enable their staff to work remotely when required – We would urge those businesses that have been hit hard to come and talk to us.”