A recent survey of 292 companies, from trade body Make UK and BDO, has highlighted a “nosedive” for British manufacturing. Orders and investments have slowed, partly due to a global downturn but also due to the ongoing Brexit crisis.
Domestic new orders declined in the third quarter for the first time in three years and there are now fears that we might enter into a recession.
Make UK chief economist Seamus Nevin and BDO head of manufacturing Tom Lawton issued a joint statement on the findings:
“On current trends, the economy, and the manufacturing sector in particular, looks headed towards a very challenging winter.”
Hit hardest has been the East Midlands which is heavily reliant on manufacturing and the region struggled the most throughout August.
Additionally, an IHS Markit/CIPS survey published on Monday showed British manufacturing activity contracted last month at the fastest rate in seven years. The survey revealed that companies are cutting back on investment in numerous areas including transport equipment, factory machinery and IT.
The manufacturing industry has faced a range of changes and challenges – including late payments, minimum wage changes, supply chain instability and Brexit. These issues are causing a lot of manufacturers to have serious financial and cash flow problems.
In this climate a lot of owners of UK manufacturing firms are finding trading tough, with the number of company insolvencies in the sector rising.
As Licensed Insolvency Practitioners, Clarke Bell have more than 28 years of experience in helping manufacturing companies deal with their problems and, if it comes to it, closing down their companies.
In a lot of cases, the Creditors’ Voluntary Liquidation (CVL) process is the best option. It’s a relatively low-cost solution and means that:
- The business debts will be dealt with correctly
- You’ll be able to have a fresh start
- Your legal obligations as a company director will all be met
- You will be able to have more control over your situation.
With Clarke Bell, the cost of a CVL is from just £2,995 (including VAT and the required disbursements).
If you are a director of a manufacturing company which is having debt problems and/or cash flow worries, we can help you.
Contact us on 0161 907 4044 / [email protected] for your free and confidential advice.