UK manufacturers are looking to cut costs in order to cope with increasing expenditure on raw materials, new research has revealed. 43% of manufacturers are considering cutting costs further at a time when many have already stripped back operations to the bare minimum to cater for the downturn of the last few years. More than one in four UK businesses in total has been looking at ways to reduce costs, equalling almost 500,000 businesses, whilst 6% of these have consequently reduced insurance levels, making them vulnerable to being hit hard by theft, fire or flooding. Unusually it is the large firms that are being impacted the most by turbulent economic conditions, with almost half surveyed with an annual turnover of £20million or more looking to reduce spending in other areas in their business. Naturally there were disparities regionally, with companies in the North West (52%) and North (37%) more likely than those in East Anglia (6%) to look for ways to make savings.
Invoice Finance for Manufacturers
For many manufacturers, it can seem like the only option to help cater for the increasing costs of raw materials is to cut back growth plans. And especially with bank finance proving hard to come by, manufacturers may not consider getting external funding. But accessible alternative solutions do exists in the form of invoice finance, a form of business finance that can help release cashflow and provide money upfront for invoices. Here at Skipton Business Finance, we have many manufacturers on our books which have thrived from the extra cash we are able to provide them with. Why not browse our website to find out more about how invoice finance facilities, such as invoice discounting and invoice factoring work, or give our team of experts a call today on 0845 602 9354 for more information.