More manufacturing firms slipped into administration in 2009 than in the previous year, although there are hopes that the industry is beginning to recover.
New figures from business advisory company Deloitte revealed a 12 per cent rise in manufacturing administrations in the past 12 months, with the industry accounting for 17 per cent of all UK administrations during 2009.
Despite being particularly hard-hit by the recession, the rate of new administrations began to ease towards the end of the year.
Deloitte manufacturing partner Ross James said it is "no surprise" that the economic downturn has taken its toll on the manufacturing sector.
"Fundamentally a manufacturing recovery will centre around demand. While the low value of sterling is certainly a factor when it comes to boosting the UK’s exports, there must firstly be a sustained recovery in demand," he explained.
Mr James went on to say that there have been "upbeat" consumer spending patterns, something he hopes will filter through to Britain’s manufacturers.
The number of administrations across all sectors fell by two per cent in 2009 compared to 2008, from 3,245 to 3,188.