Irwin Mitchell Welcomes Surge In Manufacturing Activity But Warns Against Increase In Disputes

Growing Businesses Must Deal With Litigation Efficiently and Effectively


By David Shirt

A leading Yorkshire-based litigation lawyer has welcomed a reported uplift in economic activity amongst manufacturers, but warned businesses not to get caught out by an increase in disputes as order books fill up.

According to the quarterly EEF/BDO Manufacturing Outlook survey, 32% of companies across the UK reported increased output, up from 12% in the previous three months.

The comprehensive report also found that the proportion of businesses planning to increase their capital investment over the next 12 months had increased significantly up to almost a quarter (24%) from 7% in the previous quarter.

This report was followed by the Markit/CIPS survey of purchasing managers, which revealed that manufacturing activity in the UK rose for the fifth month in a row in August.

Steven Bate, a partner at the Leeds office of Irwin Mitchell, said: “These latest results are a further sign of economic recovery in the UK and it is extremely positive to see that the surge in activity is also coming from the domestic economy and markets, as well as overseas.

“Businesses and the Government have been making efforts to look at cross border opportunities and the news that exports have risen to a two year high is a welcome endorsement of those efforts.”

Steven added: “We remain cautiously optimistic and advise businesses to remain vigilant. Manufacturers will be well aware of the challenges of growing a business, whilst dealing with matters such as skills shortages and funding gaps. It is also vital that they are on their guard against other issues as the economy improves, such as a potential rise in litigation.

“As order books fill up, it can be common for the number of commercial disputes to rise also. If these are not dealt with effectively and efficiently, they can take up a disproportionate amount of management time and quickly hamper future growth.” 

Read more about Irwin Mitchell's expertise in relation to Commercial Litigation and Dispute Resolution