Manufacturers' average confidence score dropped to 5.24 after the referendum from 6.37 before the Brexit vote.
The Manufacturing sector contributes £6.7 trillion to the global economy and the UK is currently the 11th largest manufacturing nation in the world. That is something of which to be incredibly proud of and it is clear that manufacturing is critical to the UK's economic stability and a focus of growth for the UK.
Manufacturing & Finance
The UK manufacturing sector is strong, but the sector's relationship with alternative finance is still in its infancy with only a fifth of manufacturers using asset finance to fund automation in 2015. In the same year 77% of manufacturing business stated they realised ROI either when expected or earlier and with 93% of automation projects succeeding in meeting their objectives, it is clear that manufacturers need to be looking to invest further in 2016 in order to continue to grow.
Our latest infographic takes a look at the current state of the UK Manufacturing market and its relationship with finance:
Why waste Cash?
It's clear from the above that automation is a key factor in Manufacturing growth, but funding further automation is not straightforward.
64% of manufacturers are not happy with their bank's range of funding and 23% find funding inaccessible or difficult to obtain. Furthermore, 38% of manufacturers want to increase cash flow, but 54% used that cash to fund automation, with just 22% using Asset Finance.
Selecting the Right Finance
That is why we have created our guide to Selecting the Right Finance. In the guide, Manufacturers can see what other finance options are available to them, such as short term business loans, longer term business development loans and asset finance, and which of these finance solutions may suit their requirements best. Download the guide to learn more.
Food for thought - The changing landscape of the food and drink industry, Barclays & Institution of Mechanical Engineers
Annual Manufacturing Report 2016, The Manufacturer
UK manufacturers provide a strong foundation for growth in the UK, EEF
EU Referendum Survey July 2016, EEF
Understanding Alternative Finance: The UK Alternative Finance Industry Report 2014, Nesta