Pound for pound
The results of Pound for pound, have revealed that UK manufacturers have a firm hold on their access to finance, be it through relationships with their banks, customers or agencies who support the sector.
The second in the series of UK manufacturing sector current issues, set out, against the backdrop of an abating recession, to explore the industry’s relationships with its financiers, and the monetary disciplines it is deploying.
Manufacturers were asked about the support or otherwise they are experiencing from their banks, probed their capital investment intentions and their export ambitions, considering the current value of Sterling.
They were asked about their experience in seeking grants and funding, and to share the measures they might be taking to mitigate the risk of incurring bad debt.
Key findings
- Over half of the respondents anticipate a status quo on securing or extending their funding or banking facility in the next 12 months, but that doesn’t mean to say that the sector is not looking at alternative sources of finance, with 33% actively doing so.
- With finance safely secured 55% intend to invest in plant and machinery, but close behind, 54% focused on new product development, and this will encourage those involved with promoting innovation as a primary route to securing the success of UK manufacturing in the future.
- One may have expected manufacturers to rush head long into exports given the exchange rates, but there is little evidence of this to date, primarily due to the flat overseas market. But it’s encouraging to note that 71% expect to increase their exports in the next 12 months.
Other facts
- Almost half the respondents were aware of the grants and funding opportunities available to manufacturers, but that leaves almost one in five still challenged to find the right information.
Deloitte LLP has produced a web seminar, hosted by Alistair Davies, and featuring Ken Hurst, Editorial Director of Works Management to accompany the survey analysis, which will help manufacturers identify these sources of funding, and the latest 2010 Guide to grants for manufacturers is also now available.
Further information
Pound for pound survey results
Pound for pound – Deloitte Manufacturing Group web seminar
2010 Guide to grants for manufacturers
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