As the global pandemic goes on, the manufacturing sector in the UK continues to get hit
hard. Over the last quarter, orders have dropped so severely it’s been the fastest plunge in
almost forty years for the sector.
Record falls
The current crisis has led to a huge decline in customer demand. Factories have been
forced to temporarily close down, and key industries such as aviation and car manufacturers
have suffered the worst due to this sheer lack of demand.
According to the latest CBI quarterly Industrial Trends Survey, which looked at 356
manufacturing companies, there was a steep decline in the 3 months to July. With volumes
dropping by 59% and orders falling by 60%. Export and domestic orders plummeted at
record paces.
Demand will remain a serious issue
Although there are tentative signs of gradual recovery on the horizon for the sector, with
output and orders expected to rise over the next 3 months, firms will continue to face
extreme hardship mainly due to the lack of demand.
250 jobs were cut by Nissan in June at the company’s Sunderland plant. And suppliers to
the aviation industry have ended up cutting thousands more jobs due to global travel coming
to a stop during the crisis.
Group director at petrochemicals giant Ineos, Tom Crotty, stated that the “…Government
policy measures have proved vital in supporting manufacturers during the crisis, but it's clear
that many firms are still in distress.”
Help for your manufacturing firm
If you’re the director of a manufacturing firm that’s currently going through financial
problems, the team here at Clarke Bell is here for you.
There are a number of different options available to you, including:
Creditors’ Voluntary Liquidation (CVL)
- Company Voluntary Arrangement (CVA)
- Pre-Pack Administration
- Business Rescue
- Moratorium 2020 – to give you breathing space during the COVID-19 crisis
You should get professional advice as soon as possible – before you put any more money
into your business.
We are Licensed Insolvency Practitioners with over 28 years’ experience in helping
companies in the manufacturing sector, and we can help you pick the best option for you.
Contact us on 0161 907 4044 / [email protected]
