Expert Suggests Manufacturers Need Better Access To Finance

By Author: Gen Federico
Total Articles: 35
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In order to build up a firm and invest in the relevant drive systems, industrial automation and so on, manufacturers need money and, according to one expert, there is a lack of such finance in the UK.

Speaking to the Financial Times, chairman and owner of JCB Sir Anthony Bamford said Britain should look towards the German model to get ideas on how to boost manufacturing.

The businessman noted that whereas in the UK there are a small number of large banks for companies to turn to when they are seeking money, in Germany there are "a few hundred". Also, the German banks "do more to lend to small to medium-sized businesses and help them to build up sales over a long time", he claimed.

Sir Anthony called on the coalition administration to make manufacturing a more central part of the economy.

The specialist went on to state: "Manufacturing is not [in financial terms] a quick turn. There is too much short-termism [in Britain], while there isn't in Germany."

Indeed, often significant investment is required in order to get such businesses up and running, and to expand them to meet rising demand. ...
... Unless they have the necessary resources to invest in drive systems, industrial automation and other such resources, companies cannot undergo such growth.

On the subject of stock market ownership of companies, the JCB boss, who has run the firm for more than 35 years, said that, while there is a role for such activity, the UK currently has a financial environment that creates to many opportunities for public shareholders to take control of manufacturing firms, instead of leaving them under private ownership.

He added: "We [JCB] haven't gone off the path [of staying private] and that's been an ingredient to our progress."

The coalition government has identified the manufacturing sector as key for the emergence of Britain from the economic troubles it is currently experiencing.

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