Market research finds 30 per cent growth in transport sector

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17th March 2016 15:42 - Transport and Distribution

New market research from the insolvency trade body, R3, has revealed that in December 2015 there were more than 4,400 active transport businesses in the North West, a spike of more than 1,000 since 12 months prior.Market research finds 30 per cent growth in transport sector

In the North West, transport is the fastest growing industry, with the number of active companies increasing by 30 per cent in the last 12 months.

R3’s research revealed that other popular sectors for start-ups in 2015 were pubs, restaurants and retail.

The number of active restaurant businesses in the North West increased by 12 per cent, to more than 4,400. As well as this, the number of pubs increased by around 9 per cent to around 2,100 and the number of retailers spiked by 8 per cent, to 15,000.

R3’s results indicated that these sectors can be the most risky, with 31 per cent of transport and retail business being at a high risk of failure in the coming 12 months. The same was said for 37 per cent of pubs and 38 per cent of restaurants.

The Chair for the North West of R3, Richard Wolff, who is also Head of Corporate Recovery and Insolvency at the law practice JMW, said of the market research findings:

“The phenomenal growth in the transport sector perhaps reflects the increasing popularity of internet shopping and home deliveries and lower fuel prices but could also be due in part to the ‘Uber effect’ which has brought a wave of new entrants into the taxi market.

“Similarly in the retail market, internet shopping has broken down the barriers to entry to the sector, making it relatively cheap and easy to start an online store, whilst at the same time bringing greater competition for traditional businesses.

"Meanwhile hospitality is an ever popular choice for start-ups. Many people harbour a dream to own their own pub or restaurant but in reality running a successful establishment is not as easy as it looks!

“The high risk scores for these sectors do, to some extent, take account of the high number of start-ups which, by their very nature, are more vulnerable than established firms but also reflect the underlying challenges facing these parts of the economy.

“Entrepreneurs starting out within these sectors need to manage their businesses carefully and to get a firm grip on their finances and cash flow in particular.”

According to the figures, the number of companies who are active in the North West has been increasing at around 2,000 per months. In December 2015, the figure reached more than 314,000.

“More and more people are taking the opportunity to start their own business – whether through necessity, for example if they have lost their job and decide to create their own livelihood, or because they are pursuing an ambition to run their own business. It is fair to say that the UK is now becoming a nation of entrepreneurs.” Added Wolff.

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