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Manufacturing industry news
News Release from: Equifax
Edited by the Manufacturingtalk Editorial
Team on 26 May 2006
UK manufacturing business failures rise
4%
Despite Gordon Brown's insistence that the UK economy is thriving, an analysis reveals that UK business failure rates are up in Quarter One 2006 by 13%, and manufacturing, up by 4%.
Despite Gordon Brown's insistence that the UK economy is thriving, the latest analysis from Equifax, the business information specialist, reveals that business failure rates are up in Quarter One 2006 by 13% The Manufacturing sector suffered a 4% rise compared to the same period last year, significantly lower than a number of other sectors, but still cause for concern
This article was originally published on Manufacturingtalk on 17 Jul 2006 at 8.00am (UK)
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Business failures in the retail sector increased by 19% and in the services sector by 14%.
Other market sectors have also experienced increases in business failures, although not as significant as the retail and service sectors.
The Equifax findings show increases of 8% and 7% respectively for the construction and transport and communications sectors.
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However, failures in the wholesale sector only rose 1%.
In light of these latest figures, Equifax is urging companies to protect themselves by implementing risk management procedures, including basic credit checks.
And it is warning that smaller businesses could be particularly vulnerable in the current economic climate.
Neil Munroe, external affairs director, Equifax explained: "Smaller businesses are more vulnerable to the impact of bad debt and fraud, yet many of these organisations fail to take even the basic steps to protect themselves." He said: "To avoid business failure, SMEs can benefit from the latest online tools, allowing them to check a customer's current credit worthiness instantly, so that they know exactly who they are doing business with.
Plus email and SMS alerts mean changes to an account such as CCJs, new directors or a credit limit change, come straight to their desktop, allowing them to respond to changing business and financial conditions of customers and suppliers quickly." Munroe added: "The importance of data sharing cannot be overestimated in helping businesses avoid bad debt and fraud.
Equifax plays a key role in creating credit communities to enable businesses to share critical default information about their customers instantly.
Sharing critical and timely information such as bounced cheques, CCJs and letters before action enables SMEs to monitor changes in the financial status of key customer and suppliers.
Armed with this information SMEs can react quickly and effectively manage risk and minimise the threat of bad debt - securing the future of their business." * About Equifax - Equifax (NYSE:EFX) is a global leader in turning information into intelligence.
For businesses, Equifax provides faster and easier ways to find, approve and market to the right customers.
For consumers, Equifax offers easier, instantaneous ways to buy products or services, and better insight into and management of their personal credit.
Headquartered in Atlanta, Equifax reported annual revenue of over US$1.4 billion in 2005, and employs over 4,500 employees in 13 countries in North America, Latin America and Europe.
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