Plea to help manufacturing SMEs as growth programme comes to an end

A plea has been made for the Government and local authorities to ensure tailored advice for manufacturing SMEs is quickly put in place once an industrial business support programme comes to an end.

The Manufacturing Growth Programme (MGP) wraps up this month when funding from the European Regional Development Fund ends.

MGP was established in October 2016 to address some of the main barriers to growth experienced by SME manufacturers and has since helped Staffordshire and Stoke-on-Trent manufacturers create or safeguard 1,161 jobs.

The programme has been providing grant funding for business improvement/capital projects and specialist mentoring from industry experts, with hundreds of companies assisted across Staffordshire and Stoke-on-Trent.

A recent independent evaluation of the programme revealed that over 95 per cent of companies surveyed expected their business to grow in the next five years because of receiving support from the programme, with 63 per cent identifying the development of new products as one of the key areas.

In addition, 63 per cent said they had already seen an increase in turnover, while 52 per cent cited improved productivity as the main outcome of the support received.

Jane Galsworthy, above, Managing Director of Oxford Innovation Advice which designed and delivered the programme, said: “With the new UK Shared Prosperity Fund dividing up funding for business support at a very local level, there is a risk that Staffordshire and Stoke-on-Trent businesses will only be able to access generic, low-quality support which delivers lower value for money and less measurable impact on businesses and the economy.”

She added: “We’ve proven over the last seven years what targeted support can do for SME manufacturers, helping them accelerate growth, improve productivity and create jobs. With funding for MGP coming to an end, this creates a significant hole in specialist high-quality support for smaller manufacturers.

“The results of our own survey of manufacturers revealed reinforces this, with 91 per cent of companies admitting they do not know where to turn for business support once this programme completes.

“Manufacturing is critical to the UK economy as it accounts for around half of all UK exports and nearly 10 per cent of the country’s overall economy.

“We are keen, therefore, to engage with government agencies and local authorities to see how funding can be best utilised to provide continued specialist support for manufacturers.”

Verity Davidge, Director of Policy at Make UK, which represents manufacturers, said: “Manufacturing is central to the future of the UK economy as a provider of high skill, high value jobs, especially in emerging technologies, digitalisation, and the move to net zero.

“SMEs are the absolute backbone of the sector employing the vast majority of people and it’s vital that support programmes are maintained to ensure they can grow and prosper.”