Yorkshire manufacturers ‘at risk’ decreases as sector continues to strengthen

Yorkshire manufacturers ‘at risk’ decreases as sector continues to strengthen

The manufacturing sector in Yorkshire is continuing to strengthen after showing signs of month improvement month-on-month.

In November, the percentage of manufacturing firms in the region at higher than normal risk of insolvency saw a slight fall of 1.2% from October, according to research compiled by insolvency and restructuring trade body R3.

Levels of heightened risk in the sector in Yorkshire are now 37.7%, just above the national average of 37.1%.

This equates to over 5,600 of the nearly 15,000 active manufacturing businesses in the region at higher than usual risk of insolvency, down from just under 5,700 in October.

In all of the 11 sectors tracked by R3, Yorkshire saw month-on-month decreases in levels of businesses at risk, with the exception of hotels where the proportion of companies at heightened risk increased by 2.6% to reach 33.8%.

Overall, levels of heightened risk in the region across all sectors fell by just under 1% from October to November.

Eleanor Temple, chair of R3 in Yorkshire and a barrister at Kings Chambers in Leeds, said: “It’s reassuring to see that the escalating levels of insolvency risk which we witnessed over the last year and a half across companies in Yorkshire appear to have plateaued.

“Despite ongoing uncertainty as March 2019 approaches, for many regional firms it appears to be ‘business as usual’, with manufacturing, which is always a useful barometer of economic health, remaining resilient.

“Overall, the region appears to be holding its own, with levels of enhanced risk in Yorkshire close to the national average across most sectors. However, for any businesses which are suffering financial problems, we continue to urge you to seek professional advice at the first signs of trouble when the most options will be available to help you.”