“Greater investment required” to recover lost ground.
A specialist investor in manufacturing SMEs has welcomed the news that Jaguar Land Rover is to create 1,700 new jobs at its plant in Solihull. But it has warned that much greater investment is required if the Midlands is once more to become the UK’s manufacturing heartland.
Andrew Ramsbottom is a Managing Partner for Advent Partners LLP, a team of manufacturing SME investment and management specialists with more than 40 years’ combined operational, finance and commercial experience.
Andrew feels that though investment into the Midlands region from Caterpillar, Rolls-Royce, JLR and other major names can only be a positive thing, it should not hide the fact that manufacturing in the Midlands remains in the doldrums.
A recent Bibby survey – as reported in The Birmingham Post – suggests that Midlands-based manufacturing SMEs expect full economic recovery to take five years. The Bibby Financial Services’ Business Factors Index revealed that 65 per cent of small and medium sized enterprises in the region expect it will take until 2018 for the local economy to be restored to pre-recession levels. Almost a fifth of companies polled said conditions were still tough and they’d had to make cuts in the last three months.
Andrew said: “Of course it’s wonderful news that Jaguar Land Rover is investing in the Midlands again and creating new jobs. That can only bring positivity and confidence to the sector and to the region.”
“But more needs to be done to support the actual backbone of the region’s economy – manufacturing SMEs.”
“Banks are not always as quick or as willing to offer small manufacturing businesses financial support and, even when they do, they often don’t have the expertise to lead them out of difficult times and into success.”
“Midlands-based manufacturing SMEs need to be made aware that help is out there from businesses like ours that can not only provide finance quickly and hasten the due diligence process but also work with them closely to shore up the business and then move ahead with achieving shared goals.”
Headed up by Institute For Turnaround members Andrew Ramsbottom and David Gee, Advent Partners is looking to invest in Midlands-based manufacturing or product-based businesses with up to £15 million turnover requiring capital and support management.
Advent specialises in providing private funding of up to £0.5 million per transaction to unlock potential and maximise future development and always holds an equity position within the business providing management support, driving change and delivering success.
Advent Partners LLP recently announced plans to divest its interest in Midlands-based manufacturer TMAT, having transformed it from a struggling business into one that is now turning over around £12m per year and which Advent would now like to match with a larger group so that it can fulfil its global ambitions
