UK Ambulance Manufacturer Enters Administration, 164 Positions Under Threat
O&H Vehicle Conversions (OHVC), a prominent UK ambulance manufacturer headquartered in East Yorkshire, has officially collapsed into administration, placing 164 jobs in immediate jeopardy. The company, which has been operational for 38 years, specialises in the construction of ambulances for the UK market.
Administration Process and Official Announcement
Administrators were formally appointed to oversee the company on February 13, with the report being made public on February 17 through the London Gazette. This listing confirms the company's official entry into administration, following earlier attempts to secure a rescue deal earlier this month.
Mark Brickhill, the managing director of OHVC, explained that the company had been working closely with licensed Insolvency Practitioners to explore all possible options for survival. Despite these efforts, the administration process has now commenced, casting significant uncertainty over the future of the workforce.
Key Factors Behind the Collapse
According to Brickhill, OHVC faced substantial challenges, including severe delays in the delivery of chassis. These delays have resulted in a staggering £2.2 million in planned and achievable sales being postponed in recent months, severely impacting the company's financial stability.
Additionally, the business had recently transitioned to the production of Rapid Response Vehicles (RRVs), a shift that required retraining staff. Brickhill noted that this retraining process contributed to production falling behind schedule, exacerbating the company's operational difficulties.
Broader Implications for UK Manufacturing
Brickhill emphasised the wider economic consequences, stating that the collapse means British taxpayers' money is not being invested in the domestic economy. He highlighted the significant multiplier effect of government spending in UK factories, where every £1 spent generates a £2.8 benefit for the broader economy, supporting manufacturing, supply chains, and employment.
The administration of OHVC represents a notable blow to the UK manufacturing sector, particularly in the specialised field of emergency vehicle production. The situation underscores the vulnerabilities faced by businesses in the current economic climate, especially those reliant on timely supply chains and government contracts.
As the administration process unfolds, the focus will be on whether a buyer can be found to salvage the company or if the 164 jobs will be permanently lost. The outcome will have ripple effects across the local community in East Yorkshire and the wider UK ambulance manufacturing industry.
