The transport and haulage sector has been named the fastest growing industry in the region for in 2015, largely due to a substantial 25% increase in total number of active companies.
The North East arm of insolvency trade body R3 found that there were 1,010 active regional companies in the sector in December 2015, an increase of over 200 since the same time the previous year.
Hospitality industries in the region also showed strong signs of expansion during 2015, with the number of active restaurant companies rising by 16 per cent rise to just under 1,500, whilst the number of pub businesses increased by 12 per cent, from 554 to 621.
Despite its clear continuing difficulties, the North East construction sector had 11 per cent more active businesses at the end of 2015 than it did 12 months earlier, with the figure rising from 6,269 to 6,948.
And the important regional manufacturing, technology and retail sectors saw year-on-year increases of eight per cent in the number of firms operating therein, with more than 4,000 active manufacturing businesses across the region, as well as 3,459 retailers and 2,899 tech firms.
The figures also show that the overall number of active companies in the North East has been consistently growing by several hundred every month to reach a total of 69,415 in December 2015.
Every month, 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.
As well as being the fastest growing regional industry, the North East transport/haulage sector has also recorded the lowest such risk of any of the 12 UK regions for the tenth consecutive month.
Allan Kelly, chair of R3 in the North East and a partner with RSM, says: “The spirit of ambition and innovation is clearly as strong as it has always been across North East England, and it’s clear that more and more people are taking the opportunity to start their own business”
“The strong growth in the regional transport sector perhaps reflects the increasing popularity of internet shopping, home deliveries and lower fuel prices”
“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.”
Allan added: “Whatever sector they choose to enter, entrepreneurs need to manage their fledgling businesses very carefully, maintaining a firm grip on their finances and cash flow in particular, and ensuring that their new babies have the best possible chance of standing on their own two feet.“