ANNUAL MANUFACTURING REPORT 2016
AMR2016#sthash.oxOrS6pE
AMR2016#sthash.oxOrS6pE
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FINANCE & INVESTMENT<br />
<strong>ANNUAL</strong><br />
<strong>MANUFACTURING</strong><br />
<strong>REPORT</strong><strong>2016</strong><br />
£<br />
FINANCE<br />
& INVESTMENT<br />
Analysis by Mike Rigby<br />
Head of Manufacturing,<br />
Transport and Logistics,<br />
Barclays<br />
michael.rigby@barclayscorp.com<br />
+44 (0)20 7116 8731<br />
This year’s Annual Manufacturing<br />
Report finds a continuation of the trend<br />
of manufacturers showing sufficient<br />
confidence that they are prepared to<br />
invest in the future of their businesses.<br />
Almost a third of survey respondents<br />
said that the majority of their capital<br />
investment projects are “strategic”. This<br />
is encouraging as it represents clear<br />
commitment to the future as well as a<br />
desire to place innovation at the heart of<br />
their businesses.<br />
This year’s report shows a continuation of<br />
the focus around costs within the sector<br />
and this should come as no surprise with<br />
the various challenges manufacturers<br />
face such as increasing labour cost,<br />
margin pressure, raw material cost as well<br />
as the strength of sterling.<br />
Access to funds has been improving over<br />
the last 12 months, with an increase in<br />
the number of respondents deeming the<br />
access to be ‘very much easier’.<br />
Although there are more new funding<br />
alternatives available, the old favorites<br />
such as overdrafts, loans and invoice<br />
financing remain popular. Due to the<br />
advantages of using company assets<br />
for better cash management and an<br />
improved balance sheet, asset financing<br />
and leasing remain popular after a sharp<br />
increase since 2013.<br />
The level of satisfaction with banks’<br />
commercial funding operations seems<br />
to be continuing its recovery, with more<br />
respondents indicating they are ‘very<br />
satisfied’. We are delighted to see these<br />
results, however, it is certainly not the time<br />
for banks to rest. Competition is as high as<br />
ever and manufacturers will continue to<br />
need their banks to be supportive as they<br />
make those key investment decisions.<br />
At Barclays, we support our<br />
manufacturing clients by aligning our<br />
team closely with the manufacturing<br />
industry. Our Relationship Directors have<br />
gained specific expertise working across<br />
the sector for over ten years. At every<br />
stage, we can offer an experienced team<br />
that understands the challenges and<br />
opportunities that manufacturers face.
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