Reduction in manufacturing insolvencies leads the UK’s fragile recovery
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The manufacturing sector's resurgence has led the way in a fall of almost a third in company administrations in England and Wales, according to new data released today (4 February).
According to the restructuring and recovery firm Baker Tilly, administrations fell by 32% from 4161 in 2009 to 2831 in 2010. Leading the way in the recovery was the manufacturing sector, down by 37% from 761 for the full year in 2009 to 477 in 2010.
Commenting on the figures, Baker Tilly partner Bruce Mackay (pictured) said: "For UK PLC, this has to be good news overall – particularly in manufacturing. Transport and logistics also fared well with a 30% fall year-on-year, which could be seen as a spin-off of improvements in manufacturing as goods start to move around again. This is encouraging news for the supply sectors despite the fears of the impact of recent adverse weather conditions and fuel price increases affecting trade."
Looking ahead though, he believed the recovery remained fragile with the impact of bad weather, jobs uncertainty and the potential impact of the public spending cuts yet to be seen in full and reflected in corporate insolvency stats.
