More than £2 billion trapped in Britain's manufacturing industries
According to a report by Siemens Financial Services, approximately £2.1 billion is 'frozen' in the manufacturing sector. Much of this money is tied up in equipment purchases and could be used for a wide range of purposes, such, as acquisitions, product development and other asset refinance techniques.
Industries can boost their competitiveness with asset refinancing
Although the manufacturing sector has suffered a reduction in capital since 2009, when its value was estimated at around £2.4 billion, the industry is still failing to utilise asset financing methods to improve its competitiveness in the increasingly globalised market.
In evaluating the £2.1 billion figure, Siemens calculated the level of spending in the industry and combined this with a 'conservative' analysis of the amount of equipment eligible for refinancing in rental or leasing. The main success of the manufacturing industry, according to the general manager of SMS, David Martin, is 'high productivity' and 'efficiency', thanks to modern technology and equipment.
Mr Martin reiterated that companies must have access to good sources of capital and cannot afford to retain a large proportion of their capital budgets in assets such as plants and technology goods. He also said the difficult credit conditions and the ongoing Eurozone crisis have put more pressure on many manufacturing firms to improve their operational efficiencies or develop new products to stay competitive in the wider markets.
Refinancing can help firms improve their energy efficiency
Asset refinance can also be used to help industrial companies become more environmentally-efficient; regular and affordable payment plans can be complemented with higher savings from reduced energy consumption, which can even offset the cost of the investment entirely.
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