0800 644 6080
Call FREE from Landline and Mobile
Est. 1989

Transport Sector Rated as North West’s Most Distressed Industry

Written by: Keith Tully

Published: 20th December 2016

Transport Sector Rated as North West’s Most Distressed IndustryThe transport sector has become the North West of England’s most financially distressed field of operations.

That’s according to a new set of figures on the subject compiled by the UK’s insolvency and restructuring trade body R3, which now believes there to be around 2,100 financially distressed transport businesses in the region.

Until recently, technology businesses were statistically the most likely to face serious financial problems in the North West but the transport sector is now regarded as being the most perilous for individual companies.

R3’s numbers suggest that around 40 per cent of all transport businesses in the North West have a higher than average risk of failure, which is almost twice the figure for manufacturing and hotel businesses.

Roughly 26 per cent and 27 per cent respectively of pubs and restaurants in the region are regarded as having a higher than average chance of facing insolvency, with the corresponding figure for the construction sector put at 28 per cent.

Behind the transport sector, the field within which businesses have the highest chance of being distressed in the North West is technology and IT, with 36 per cent of the region’s companies in the sector currently deemed to be at higher than average risk of insolvency.

Richard Wolff from R3 describes the transport sector as being “highly competitive” and has highlighted several factors he believes have made the industry a more challenging one in which to operate in recent quarters.

“Haulage firms will have been feeling the squeeze this year due to the rise in fuel prices and the introduction of the National Living Wage in April, as well as continued problems of late payments by bigger customers,” he said.

“Meanwhile there have been a lot of new entrants in the sector, with increased demand for courier firms due to the rise in internet shopping and platforms such as Uber and Deliveroo making it easier to start up new businesses.

“Transport companies and other companies which offer logistics as a principal part of their core services need to scrutinise costs and cashflow to ensure they remain viable and be careful not to rely on debt funding that they cannot afford to repay.”

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners