Let’s talk: Manufacturing
Let’s talk: Manufacturing
“We all know that investment in technology and skills drives productivity, and a productive economy leads to higher standards of living”
The Government’s super-deduction tax relief is among the drivers of this investment, which according to Mr Atkinson represents a fantastic opportunity for manufacturers. “We all know that investment in technology and skills drives productivity, and a productive economy leads to higher standards of living,” he says. “I’m sure many have been taking advantage of the super-deduction scheme, which doesn’t end until March 2023, so there’s still time.” Aside from being the headline sponsor of the MACH exhibition for the past 12 years, Lloyds is clearly not short of manufacturing credentials. Managers at the bank undertake training at WMG (Warwick Manufacturing Group), not to become engineers, but to understand manufacturers better. Lloyds has also invested around £10 million into the Manufacturing Technology Centre (MTC) in Coventry. This investment will support the training and upskilling of around 3500 graduates, engineers and apprentices by the end of 2024. In addition, the bank works with the MTC to offer a manufacturing support service that helps de-risk any potential investments. “We were founded by two industrialists in Birmingham in 1765, so manufacturing is endemic in our history,” concludes Mr Atkinson. “Sure enough, there are plenty of challenges for manufacturers at present, but in my 34 years of supporting these companies at Lloyds, I’ve learnt about their resilience, agility and determination. When one door closes, manufacturers somehow find the key to open another. I’m really excited about what this sector can achieve in the years ahead.” n
to net zero are seeing opportunities in both UK and overseas markets. Any new business opportunities will of course be warmly welcome in the post-pandemic recovery. The challenges of the pandemic left a number of manufacturers using lockdown periods to reflect on their processes and shop-floor layouts. Many also began identifying future investments. For instance, the need to address skills shortages has seen growing investment in intelligent automation and robotics. Says Mr Atkinson: “We did some work with the MTA (Manufacturing Technologies Association) around four years ago looking at what we call the ‘multiplier effect’ of
UK manufacturing businesses. While UK manufacturers employ around 2.6 million people, we discovered they create a further 2.4 million jobs indirectly, plus an additional 2 million roles created through the spending of those direct and indirect employees. So in terms of the sector’s importance, we estimate it’s actually responsible for around 23% of GDP rather than the official figure of 10%. We shouldn’t lose sight of the importance of this sector, and this sector shouldn’t lose sight of the importance of investment. Here at Lloyds we’ve seen good levels of sustained investment across the industry, whether using balance sheet liquidity or funding that we can provide.”
www.lloydsbankinggroup.com
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Machinery & Manufacturing 16
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