Yorkshire’s manufacturing sector looks to be well placed for growth, with firms seemingly finding strength in numbers according to two new studies.
The number of deals involving Yorkshire-based manufacturing firms reached its highest level for six years in the last quarter, according to the latest data and analysis from Experian on behalf of law firm, Irwin Mitchell.
Yorkshire manufacturers were the target of 28 deals during the third quarter of 2014.
The figure marks a 27% increase on the previous quarter and takes the total number of transactions for the year so far to 69 – just three behind the number completed within Yorkshire throughout the whole of 2013.
This increase, the fourth consecutive quarterly rise, resulted in the Yorkshire region increasing its national share of manufacturing M&A activity to 12.4%.
Although this represents an uplift compared to the previous three quarters, the region’s share was below that of the South West and the North West.
The report also highlighted an increase in the number of manufacturing deals in the region which were private equity backed.
During July, August and September, six manufacturing deals were financed through private equity, taking the total for the year so far to 12.
Meanwhile, a report from insolvency trade body R3 shows that Yorkshire and the Humber had the lowest level of manufacturing firms with a higher than normal risk of insolvency with just 16.8% or 1,941 firms compared with a national average of 19.3%.
It was also among the top performing regions in the property, banking, hotels, pubs, restaurants and technology sectors. In fact, of the ten regions surveyed, the only sectors in which it came lower than third place was in the professional services and retail sectors
"Generally, we have seen Yorkshire and the Humber remain fairly robust throughout the recession and the strength of key sectors such as manufacturing is helping to drive a stronger recovery than in many other regions," explained William Ballmann, chair of R3 in Yorkshire and partner at Gateley LLP.
"These latest figures show that our region is in pretty good shape compared with many other parts of the UK and it is particularly encouraging to see steady improvement across such a wide range of sectors."
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