Steve Currie, director at Stoke-on-Trent-based business advisory and insolvency specialists Currie Young, reflects on the significance of the government’s recent £120 million support packages for the ceramics industry and examines the challenges that continue to face manufacturers across Staffordshire and beyond.
“The recent news of a £120m government support package for the ceramics industry is extremely welcome, especially in uncertain times.
As someone born and bred in the Potteries, I know how important the ceramics industry is to our county. My early summers were spent working in local pottery firms, seeing first-hand how ceramics were made.
During my career in the insolvency sector, I’ve worked with several ceramics businesses under financial pressure, from the receivership of Burgess & Leigh to assignments involving Grindley Pottery and Blakeney Pottery. More recently, I served as Joint Administrator of the Wedgwood Museum Trust, helping to preserve an important part of the city’s heritage.
I’ve seen the sector from the inside and outside, and it’s clear that the action taken by the government was desperately needed. Whether this will be enough remains to be seen.
A Thoughtful, Tailored Approach
When businesses come under strain, the approach taken can significantly influence outcomes. Traditional insolvency processes often focus on breaking up assets to maximise short-term returns, but in ceramics there is frequently a wider context.
For example, during the Wedgwood Museum Trust administration, the collection, though culturally significant, was legally an asset of an insolvent entity. By working closely with stakeholders, we were able to achieve an outcome that delivered value while protecting the collection and keeping it accessible.
Key issues typically include:
- Cash flow management
- Rising cost bases, particularly energy
- Refinancing
- Lender engagement
- Operational restructuring
Early advice is crucial, with businesses who act sooner having far more options than those who wait for pressures to escalate.
Adapting to a Changing Market
Ceramics isn’t a static industry, with many businesses, regardless of their size adapting to the changing markets through product development and branching out into new markets. Larger brands face the challenge of balancing cost pressures with maintaining heritage and quality. Clear decision-making based on realistic financial understanding is essential.
For the ceramics firms that still struggle despite the government intervention, the most successful outcome is to avoid formal insolvency altogether. Early engagement allows times to explore options and implement changes before pressures become unmanageable. In a sector so closely twinned to the local identity and heritage of the Potteries, timely advice makes all the difference.
Ceramics is part of Staffordshire, and with ongoing support, businesses can navigate potentially troubled waters that could still lie ahead.”
