Brexit will make no difference to flourishing UK output; incentives in place to support manufacturers; financial stability secured with manufacturing finance
MANUFACTURER Confidence should be increasing thanks to the abundance of positive news emanating from the sector, but what can you do to ensure you succeed regardless of the Brexit deal?
Frictionless trade and maintaining existing supply chains will be crucial, but with the transition arrangement still continuing after the March 29, 2018 leaving date, the focus should be placed on improving exports outside the European Union and supplying the flourishing innovation sector in the UK.
The key issue cited by manufacturers for not investing in innovation was the accessibility of finance – not demand or lack of market confidence.
Our message is clear: finance should be and is available to all businesses large and small and should be celebrated as a profitable means of expanding business growth.
The government’s AIA (Annual Investment Allowance) has been increased to £1 million and businesses have been incentivised like never before to reap the rewards of investment: history has taught us that failure to invest is an investment in failure.
Internal requirements are increasing and the funds allocated to house-building, transport infrastructure, and productivity-boosting solutions are facilitating increased demand on products from the sector.
Expanding to international markets will be crucial for every UK manufacturer – whether a major corporation or SME.
SME manufacturers have been faced with one overriding enemy: themselves. Growth has been stifled by a lack of innovation and this has not been for the wanting of international interest; demand for UK products is increasing, while ongoing tensions between the US and China ensures that opportunity can expand in these markets.
Of the companies supporting one of the UK’s few expanding sectors — electronics — 95 per cent of them comprised SMEs.
Innovation has declined during the last four years and the industry is suffering for it. In order to invert this pattern, investment will be imperative across capacity, equipment, and software.
Head of Marketing at Portman Asset Finance stressed that all of these issues would be solved with manufacturing finance. He said: “Finance is the number one reason for the industry stagnating and declining, but with AIA incentives and the ability to protect all working capital through asset finance solutions, there is no reason for a manufacturer to suffer – regardless of Brexit.
“With the equipment in place, you can increase output, boost productivity, and offer your services to national and international projects that you couldn’t have otherwise done.”