Manufacturers’ finance difficulties cost economy £35bn

By James Ridler contact

- Last updated on GMT

Challenges in securing finance has seen mid-sized food firms miss out on £35bn of sales
Challenges in securing finance has seen mid-sized food firms miss out on £35bn of sales
Mid-sized food and drink manufacturers in the UK are finding it difficult to raise finance, costing the UK economy £35bn in lost revenues, claim financial experts.

Research by Wyelands Bank found nearly half (48%) of food and drink businesses with turnovers of between £10m–£300m have cited challenges in raising finance, while one in three (31%) said accessing finance was more difficult now than five years ago.

Chief executive Iain Hunter said the research highlighted that the situation was getting worse, not better.

“Without greater access to finance, UK mid-sized food and beverage manufacturers will not be able to trade, grow and create jobs,”​ said Hunter.

Helping mid-sized businesses unlock growth along the manufacturing supply chain would help tackle the UK economy’s productivity challenges.​ 

Stilted job creation

Losing access to finance has led to manufacturers missing out on new contracts, stilted new job creation and cost an average of £27.4m in lost revenues, Wyelands added.

The figures suggest that the 2,480 mid-sized food and drink manufacturing businesses in the UK have collectively missed out on 25,300 contracts. These would have created 35,365 jobs and some £35bn in revenues.

“Mid-sized firms generate more growth and create more jobs than their larger or smaller peers, but they are often neglected by banks and financial services providers,”​ Hunter added.

Wyelands Bank was set up to address these issues and help these firms to unlock growth, filling a vital gap in the market.”

48% by James

Related topics: Business News, Manufacturing

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