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    Finance

    SMEs need financial support

    • By Editor
    • June 1, 2020
    • 2 minute read

    SMEs are calling for greater and faster support from the government as they confront falling sales, production volumes and potential job cuts amid the Covid-19 pandemic.

    The latest Manufacturing Barometer surveyed over 600 firms across England and reveals how almost 9 out of 10 respondents predict a drastic decline in production volumes and a similar number (85%) expect sales to drop over the next six months.

    Conducted by South West Manufacturing Advisory Service (SWMAS) and the Manufacturing Growth Programme (MGP), the report shows that 55% of firms believe they will need to cut jobs between now and October, despite the grants and furlough scheme.

    84% of SMEs surveyed said they require urgent financial support to get through the current climate, with only 16% confident in the government support.

    SWMAS’ Simon Howes said: “Covid-19 is having a huge impact across the UK economy, but it is especially problematic for our sector as manufacturing cannot be carried out remotely. Top of the wish list for SMEs is stronger financial assistance and for government to go ‘faster and further’.

    As the largest survey of its type in England, the results reflect a positive response from UK manufacturing to support the call for medical equipment and PPE. Just over a fifth (21%) have already responded with a further 13% willing to access advice on how to switch their production.

    “That said, it is heartening to see that many SMEs are adapting to the situation by diversifying their processes and product ranges in all manner of innovative ways.”

    Other key findings show 84% have seen an impact on staff attendance with 82% saying supply chains have been affected. Only 13% anticipate an increase in capital expenditure, compared with 51% in the January 2020 survey whilst 25% highlight the need for supply chain support and 22% are looking for help with risk management and strategic planning.

    https://cdn.mtdcnc.global/cnc/wp-content/uploads/2020/06/03100357/0_TJR_BPO_200429machine_02-615x360.jpg

    SMEs need financial support

    SMEs are calling for greater and faster support from the government as they confront falling sales, production volumes and potential job cuts amid the Covid-19 pandemic.

    The latest Manufacturing Barometer surveyed over 600 firms across England and reveals how almost 9 out of 10 respondents predict a drastic decline in production volumes and a similar number (85%) expect sales to drop over the next six months.

    Conducted by South West Manufacturing Advisory Service (SWMAS) and the Manufacturing Growth Programme (MGP), the report shows that 55% of firms believe they will need to cut jobs between now and October, despite the grants and furlough scheme.

    84% of SMEs surveyed said they require urgent financial support to get through the current climate, with only 16% confident in the government support.

    SWMAS’ Simon Howes said: “Covid-19 is having a huge impact across the UK economy, but it is especially problematic for our sector as manufacturing cannot be carried out remotely. Top of the wish list for SMEs is stronger financial assistance and for government to go ‘faster and further’.

    As the largest survey of its type in England, the results reflect a positive response from UK manufacturing to support the call for medical equipment and PPE. Just over a fifth (21%) have already responded with a further 13% willing to access advice on how to switch their production.

    “That said, it is heartening to see that many SMEs are adapting to the situation by diversifying their processes and product ranges in all manner of innovative ways.”

    Other key findings show 84% have seen an impact on staff attendance with 82% saying supply chains have been affected. Only 13% anticipate an increase in capital expenditure, compared with 51% in the January 2020 survey whilst 25% highlight the need for supply chain support and 22% are looking for help with risk management and strategic planning.