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More manufacturing firms at risk of failure
Thousands of manufacturing companies in the UK face the prospect of going out of business by the end of 2009, according to a new report.
BDO Stoy Hayward has suggested that low demand in the global export market has increased the possibility of more than 2,400 business failures occurring before the commencement of this year.
This climate could lead to a growth in recruitment of executives experienced in occupying interim management positions, as crisis-hit corporations turn to director-level staff with the ability to tackle poorly managed commercial relationships and bring sound financial management.
Based on statistics obtained from the Department of Business, Enterprise and Regulatory Reform, the data claimed that the final number of manufacturing failures will be hundreds more than recorded in 2008.
Kim Stubbs, manufacturing business restructuring partner at BDO Stay Hayward, suggested that reduced sterling exchange rates could contribute to the beginnings of a recovery in the sector.
He said: "There are evidently still challenging times ahead for the manufacturing sector, with high levels of business failures expected in the coming months."
Categories: Energy, Manufacturing & Infrastructure