Research carried out by manufacturers’ organisation Make UK has suggested that more than a third of manufacturers in the UK are struggling with rising costs, debt and business red tape.
40% of manufacturers surveyed said that they had consulted an insolvency specialist or are looking to do so in the next 12 months. Cost inflation has put pressure on businesses as they combat skills shortages and rising costs, Make UK found.
Meanwhile, 50% of firms reported increased levels of debt when compared to the start of last year.
Commenting on the issue, James Brougham, Senior Economist at Make UK, said: ‘Industry is facing the perfect storm with a raft of rapidly escalating costs combined with significant levels of debt which many companies took on as a precautionary measure just to stay afloat.
‘Given the inflationary spiral shows every sign of continuing to climb, many companies fear a tipping point that could make their business models unviable.’