Administrations down, says report
THE number of manufacturing and retail companies going into administration in Yorkshire has experienced a significant drop during the first three months of the year, according to a new report.
Latest analysis of administration figures by business advisory firm Deloitte show administrations are down by more than 13% to 85, compared with the same period in 2007 when the total was 98.
In the North East the figure is up by 26.7% to 19 and in the North West by 44.1% to 147.
Overall, the manufacturing industries suffered continuing pain with 107 appointments but this figure is nearly 40% lower than a year ago at 175.
The property, construction and electrical installation and plumbing sector saw a rise of 59 appointments to 168, a 54.1% increase.
Appointments in retailing were down from 98 to 56.
Ian Brown, reorganisation services partner at Deloitte in Leeds said: “The sectors which are having trouble are obviously property and construction as well as anything which tangents on property. No doubt, in the fullness of time, retail will be affected by the negative sentiment generated by falling house prices and the fact that people feel less well off.
“Given the current economic climate, it is surprising to see a 43% fall in the number of retail businesses that went into administration this year, compared with the year before. In the manufacturing sector, we have seen nearly a 40% drop in administrations from the previous year. While the credit crunch bites hard in the City, with lenders all but closed for business at the larger end of the market, the pain has yet to be felt as severely in the manufacturing and retail industries.”
