The number of administrations in the North West in 2024 has kept pace with last year as the construction, manufacturing and services sectors continue to face cost challenges.

The latest analysis of notices in The Gazette by Interpath Advisory shows there have been 186 administrations across the North West in the first nine months of 2024, up slightly on the 184 last year. The number of administrations in the third quarter also rose slightly on the same period last year, up from 54 to 58.

The region’s hardest-hit sectors in the first nine months of the year were business services, with 31 administrations, industrial manufacturing, with 26 administrations, and building & construction with 20 administrations.

Nationally, there were 1,016 administrations between January and September 2024, in line with the 1,013 in the same period last year

Rick Harrison, managing director and head of Interpath in the North, said: “The North West appears on track to record as many administration cases as it did last year. Despite some improving economic metrics, these figures lay bare the fragility that persists in the economy and challenges that still face business leaders.

“The picture on the ground here in the North West is similar to what we’re seeing on a national level. There’s a stubborn volume of administrations across the country, but also there’s a clear profile of the type of businesses in distress taking shape.

“Those in the construction sector have really suffered so far this year as they navigate the impact of such a sustained period of price inflation and square that with the prevalence of fixed price contracts across the sector. Business services, a sector which has historically been very resilient has also been a hot spot for distress in recent months, which is a symptom of the general volatility that has been felt across the economy. For the North West, we’ve also been hard hit in industrial manufacturing, as well as the likes of retail and logistics, which all play prominent roles in our economy.

“Looking ahead, we expect administrations to push beyond last year’s figures as some businesses struggle to respond to volatile market conditions, this will likely generate M&A opportunities for more resilient companies across the region looking to grow revenue or enter new markets. Whatever position they are in, business leaders will be looking to the Budget at the end of this month for some stability and visibility so they can make better, more informed decisions to guide their organisations through this fragile economic period.”

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