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Latest news from dcpr and its clients
31st August 2010
Latest News from MAS-WM
Access to finance continues to hamper West Midlands manufacturers claims MAS-WM Chief
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Simon Griffiths, Chief Executive of MAS-WM
The recent upturn in the reported fortunes of the UK’s banking sector has not translated into the expected lending increase to business, claims the head of the Manufacturing Advisory Service – West Midlands.
Despite the widespread announcements of a return to profit from the banks, little benefit is being felt by the region’s manufacturing sector according to Simon Griffiths.
Working with companies across the region every day, Simon explained that businesses are still facing major difficulties in accessing finance.
He said: “While it is very good to hear the banking industry is slowly finding its feet, we are still receiving regular feedback from companies that are being hampered in their efforts to grow by a direct lack of lending.
“Given that just about every indicator out there shows us emerging from the downturn this just seems plain nonsense, but this is what we are hearing loud and clear.”
Simon explained that although accessing finance from the banks was a challenge, there was a great deal more that could be done on both sides to encourage lending and investment in new products, processes and services.
“I have visited numerous manufacturers in our region and those making strides forward are those that know exactly where they want to go and have put time into the three P’s – Product’s, Processes and People.
“Generally, these firms have embraced leading-edge technology for their production equipment and upskilled their employees to maximise the benefit of this technology. More often than not, there is either a unique or innovative product they can offer their customers and for which a premium price can be demanded.
“The identification of the unique selling point by companies is vital to showing the viability of both product and business and the preparation of a robust plan that then justifies investment.
“It’s here really where I think banks and businesses could be more joined up. If the money is there to be loaned, the business case is right and there is confidence in management, then it should be a win-win for both parties.
Simon singled out the need for communication between banks and businesses to be better to help each understand the other’s needs.
He concluded: “Beyond that the re-introduction of local business bank managers, although controversial, could be of real benefit. In the days of a local manager he or she had such good working relationships with their customers and could spot a winner when one came along.”
Established in 2002, MAS-WM has assisted over 6000 companies to improve their products, productivity, processes and people, adding over £250m to the turnovers of those firms that have embarked upon in-depth business improvement projects.
For further information, please visit www.mas-wm.org or contact 0845 245 0845.
