UK manufacturers missing out on £183 billion due to lack of finance, finds research

Research from Wyelands Bank, a company set up to help small and medium businesses, has shown that mid-sized UK manufacturers could be missing out on £183 billion in revenues due to insufficient access to finance.

After conducting research on mid-sized UK manufacturers that are turning over £10 million to £300 million, Wyelands Bank found that 89 per cent are held back because of a lack of finance.

Difficulties raising finance to support their growth have stopped them from winning new contracts, which has stifled new job creation.

Each firm said that difficulties raising finance meant they had missed out on an average of £20 million in revenues and an average of 11 new contracts, which would have enabled each firm to create ten new jobs.

These figures suggest that the 23,000 mid-sized manufacturing businesses in the UK have collectively missed out on 163,000 contracts, creating 175,000 jobs.

Iain Hunter, CEO of Wyelands Bank, said: “Our research shows that UK mid-sized manufacturers are not able to grow to their full potential without greater access to finance. But that finance has not been available as traditional banks are too often unable to help.

“Helping individual businesses unlock growth along the manufacturing supply chain would help tackle the UK economy’s productivity challenges. Mid-market firms can have a disproportionate effect on growth and job creation, but first they need to be understood as individual businesses.”

“It takes time and effort to understand a firm’s specific challenges, and identify how to help them. This must then be underpinned by a range of flexible financial solutions to help shape the right answer.”

“To make it easier for firms to raise finance, financial institutions should be straightforward to deal with and speak the same language as their customers.”