44
SEPTEMBER 2016 PRO INSTALLER
PRO BUSINESS
www.proinstaller.co.uk
PRODUCTION UP BUT
OPTIMISM FALLS
The UK’s small and medium-sized (SME) manufacturers saw a rise
in the volume of output in the three months to July. But business
optimism fell sharply amid ongoing uncertainty, according to the latest
Confederation of British Industry (CBI) quarterly SME trends survey.
The survey of 472
firms reported that total new orders and new
domestic orders were
rela-tively unchanged,
although firms expect
these to fall over the
next three months
highlighting the need
for action to raise confidence.
Business optimism fell
at its fastest pace since
January 2009 in the last
quarter. Investment intentions in buildings, planting
and machinery have been
scaled back although looking ahead to the next 12
months, SME manufacturers
intend to increase spending on product innova-tion
and training for staff to
help bridge the UK’s skills
gap. And there was a rise
in employ-ment in the last
quarter with the expectation that hiring will remain
stable over the next.
Optimism about export
prospects for the year
ahead rose slightly, with
SMEs reporting the first
improvement in competitiveness in EU and nonEU markets since 2013.
Although the volume of
export orders fell again
on the previous quarter –
SMEs anticipate that they
will rise in the coming
quarter, after no increase
since April 2014. However,
the proportion of firms
reporting political or economic conditions abroad
as a factor likely to limit
export orders over the next
quarter climbed to a record
high.
Rain Newton-Smith, CBI
Director for Economics,
said:
“The UK’s SME manufacturers reported higher
production, more staff
hired and now expect to
sell more of their worldclass goods overseas over
the next quarter, with a
weaker sterling having a
hand in this.
“But overall they do feel
less optimistic and are
scaling back some investment plans in ma-chinery
and plants.
“Naturally, much of
the concern is related to
uncertainty and business
wants to now see the
new government deliver
a clear plan and timetable
for the EU negotiations
ahead, while cracking on
FUND TO HELP SMALL
BUSINESS GROWTH
with immediate domestic priorities, including a
decision on new aviation
capacity in the south east,
which will help the UK’s
SME manufacturers to
reach new markets in the
future.”
cbi.org.uk
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NatWest has launched a new £1bn lending fund to support the
growth plans of small businesses across England and Wales.
Businesses with a turnover up to
£2m can apply for fixed rate loans
up to £500k which have no set up or
repayment fees. With the current uncertainty in the UK, it is hoped these
loans will give businesses the confidence to think about growth, knowing they can repay without penalty if
they decide not to use the loan.
Marcelino Castrillo, Managing Director of
Business Banking, said: “Small businesses
make up more than 99% of private sector
businesses, so when they want to grow it’s
essential we’re there to help them. With
the creation of this £1bn fund we want to
assure small businesses that we have funds
available and we want to lend.
“We want to be easy to do business with
and for our products to be simple and
transparent, which is why we scrapped set
up and repayment fees on our loans. In this
‘regular education
events for local business
communities, covering
topics from importing and
exporting to cyber security’
period of uncertainty, we hope this flexibility will give confidence to businesses that
are ready for growth but might be delaying investment decisions. Almost half of
all private sector employment comes from
small businesses, so helping them achieve
their ambitions is hugely important and
we hope to support as many businesses as
possible.”
NatWest has also established a team of
‘Business Growth Enablers’ to provide skills
and guidance to businesses across England
and Wales. This team hosts regular education events for local business communities,
covering topics from importing and exporting to cyber security. These events are open
to all local businesses, not just customers,
and provide not just an opportunity to
learn, but to connect with other businesses
in their area and organisations that can help
them.
Existing customers who are interested in
finding out more about the Small Business
Fund should speak with their business or
relationship manager. New customers who
would like more information should call
0345 711 4477. Lines are open 24 hours a
day, 7 days a week, 365 days a year, or call
into a local branch and arrange an appointment with one of our business team.
business.rbs.co.uk
ADF PLASTICS LTD