Manufacturing in the UK has been met with trials and tribulations. However, growth continues to prevail amongst a turbulent economic and political climate. This industry continues to feel the strain of currency changes, and Brexit has the potential to put further unknown pressure on this thriving industry.
Given this level of uncertainty, many businesses are undertaking prudent measures to protect working capital and cash flow to help secure and guarantee continued business growth. Our quarterly survey of over 900 UK-based SMEs (Close Brothers’ Business Barometer) explores the core challenges many organisations are experiencing and gives us a lot of insight into what is keeping you awake at night.
One of the key findings from this survey was that one third of all manufacturing firms are suffering from a major payment delay problem, which is causing all measures of challenges for the businesses including:
- Additional hours being spent chasing unpaid invoices
- Unpaid invoices result in a decline in liquid funds and business cash flow, putting major strain on key stakeholders and limiting their ability to make strategic business decisions.
- Stymied growth due to an inability to purchase more stock, materials or machinery, or even hire more employees.