Analysis of insolvency statistics across the country shows North East industry sectors are outperforming their counterparts in other regions.
Research by insolvency trade body R3 shows the North East’s restaurant sector stands out with the lowest proportion of companies with a higher than normal risk of insolvency.
The region’s transport and retail sectors were also in the best position of any other regional peers.
The North East’s manufacturing sector has the second lowest proportion of firms at high risk of insolvency, behind Yorkshire. Similarly the region’s agricultural industry is only behind the East Midlands in the rankings.
R3 said consolidated figures for the second half of 2014 show the North East’s restaurant, technology, construction and agriculture sectors have all seen the proportion of firms therein facing a higher than normal risk of insolvency fall over that period.
Only marginal rises of less than 1% were experienced in the manufacturing, technology, retail, construction and transport sectors. Meanwhile the regional hotel and pub sectors saw a 2% rise over the second half of 2014.
Allan Kelly, chair of R3 in the North East and a restructuring partner with Baker Tilly North East, said: “Reviewing how things stand at the start of 2015 shows a region that has become more resilient during 2014, and that there is an opportunity to achieve even greater stability and success throughout the coming year.
“With their traditionally important positions within the North East economy, it’s particularly encouraging to see both our manufacturing businesses doing so well in comparison to their peers across the nation, and the insolvency risks facing the construction sector lessening over the second half of 2014.
“The coming 12 months will no doubt encompass their own challenges, chief amongst which could be properly managing the growth that comes with the improved economic conditions that are forecast.”