Freeing up Cash Flow Could Give Manufacturers a Boost

7th March 2018

Britain’s factories suffered a slowdown in growth to an eight-month low last month as manufacturers were hit by Brexit uncertainty and a stronger pound.

According to new figures released from the purchasing manager’s index (PMI), activity across the sector slipped to 55.2 in February, its second-lowest reading since the June 2016 Brexit vote. Factors such as Brexit uncertainty and higher business costs are said to have contributed to the slowdown. With the future of the UK market uncertain, business confidence is shaky and many workers are unsure of their place. There are ways to offset the slowdown, however, and some businesses are open to a change.

At the Credit Protection Association, our debt recovery services free up our members’ cash flow, allowing them to afford new expansion plans and newer technologies for their offices. If any sector experiences a slowdown in output and activity, replacing manual processes with automaton is one way to incite confidence from your workers and encourage stronger productivity.

Dave Atkinson, a spokesman for Lloyds Bank Commercial Banking, said the sector was in a positive mood despite the slowdown and was bringing forward plans for investment.

“Recent figures show sector productivity is increasing, although there is still some way to go before the UK catches up to its G7 counterparts,” he said. “But manufacturers are taking steps to make this happen by investing in automation and exploring the opportunities presented by Industry 4.0.

Bank of England lending figures for February showed a steep rise in borrowing by manufacturers for investment, maintaining a trend that started last April.

As a business owner, there is always the possibility that you could be hit with a setback in either demand, productivity or sales. There are, however, ways to bypass economic behaviour for the sake of your business. By freeing up cash flow you can invest in technology, new offices and a larger workforce; all of which will strengthen your business and make any dip in the market less significant.

At the Credit Protection Association, we recover long-forgotten debt for many of our members, allowing them to expand or save their cash any way they deem fit. As the economic and political climate of the UK remains uncertain it is imperative that every business owner has precautions. By freeing your business of any late payers, non-payers or bad payers you will be less vulnerable to changes in the market while utilising our credit management products will ensure you stay that way.