NEW research has uncovered further evidence of the improving resilience of the regional economy.

Insolvency body R3’s assessment showed that the number of businesses with a higher than normal risk of insolvency were falling in the North East and that the region was the UK’s top performer in the transport and haulage, retail and restaurant sectors, with the hotel, manufacturing and marine sectors also scored within the top three nationally.

R3 uses research compiled from Bureau van Dijk’s ‘Fame’ database of company information to track the number of businesses in key regional sectors that have a heightened risk of entering insolvency in the next year on a monthly basis.

The latest regional figures showed month-on-month improvements in the construction, restaurant, manufacturing, property, retail, banking & finance and technology sectors, with only the latter two industries facing a higher risk of insolvency than their peers across the UK.

Allan Kelly, chair of R3 in the North-East and a restructuring partner with Baker Tilly North East, said:“While there's still little room for complacency about our economic position, the general picture across the North-East is one of increasing optimism and improving performance, and the enhanced stability that our latest survey suggests provides good evidence to back this up.

"The position of our industries in comparison to competitors around the country also offers much encouragement, and will help give our businesses the stable platform they need to go after more contracts outside the North-East.

"Given the particular importance of the manufacturing, construction and property industries to the North-East, it's especially good news to see the insolvency risks being faced by firms in these areas falling, and it's hopefully a trend that we'll see sustained.

"Issues do remain across a number of regional sectors, and financial problems can of course strike any business, regardless of the performance of the industry in which it operates.

“The best way for all company owners and management teams to address any financial problems that arise is always to get advice from a qualified source such as an R3 member as soon as issues become apparent, rather than just hoping that they’ll go away, and proactively working towards resolving their firms’ problems.”