Throughout successive governments, a lack of financial investment in the creation of new roads and railways has slowed down the growth of industrial investment.

Roads now are congested and they require considerable repair works. New motorways are required but due to planning etc no new real motorways have been built.

Over the past twenty years, how has this impacted on the solvency of companies and their ability to avoid an insolvency process?

Transportation is a major cost of moving goods from A to B. Rising fuel prices along with long delivery times are not being recovered fully in the sales process. This impacts heavily on profitability and cash flow, and often causes company insolvency due to failure to deliver on time, at a lower cost.

So how can companies avoid insolvency with the lack of investment in the north west?

  1. They can use third party carriers at fixed costs
  2. Use third party carriers to move goods on empty return lorries.
  3. Stand firm and ask the customer to absorb the cost of carriage.
  4. Relocate to a easier distribution point.

Quick fixes are not always available, and it is at this point that company failures happen. An injection of cash is not always the answer. The central government along with local authorities need to act fast to overcome the problems of transport to allow the North West to grow.

If you or your business need help or advice on cashflow shortages or insolvency, contact HBG Advisory on 0330 660 0027 or visit our website