Recession – where are we in Manufacturing?

When he was chancellor, Gordon Brown declared that his prudence meant “no more boom and bust” - and yet here we are...

Tony Blair famously declared that Saddam Hussein had weapons of mass destruction that could be deployed within 45 minutes. It turns out my 4 year old son had more dangerous weapons.

There is so much press speculation, political lies and spin on so many matters these days. The latest is that the economy grew last quarter by 0.1%. That’s because of that chocolate bar I bought in December. Had it have been chewing gum then we may not have made 0.1%.

What does the current state of play mean for manufacturing businesses in the North West?

Well, I don’t think it means that much. Some manufacturing businesses are suffering still, whilst others are flourishing. Why is that?

Put simply, individual owner managed businesses in Manufacturing are less likely to be subject to the general trends of the UK economy.

As a Tax accountant, I act for a business in Lancashire whereby one of its competitors went bust. Our client picked up quite a bit of work as a result. Great for our client, but disastrous for the competitor.

Manufacturing businesses in the North West that are well managed, with the ‘wool on their backs’ to weather the storm should be feeling a little more confident than they did one year ago. There are still risk factors though. I think the largest of these are 1. The banks and 2. Reliance on large customers.

Whist we may be technically out of recession now, remember that recession can hit an owner managed business at any time. Likewise some manufacturing businesses may say ‘recession, what recession?’ The clue is that your business is bespoke to you. Make sure you listen to the right professionals. Your accountant should be well placed to advise on the risks to your business.