Recent reports have claimed that Small and Medium sized manufacturing companies in the UK are holding almost £5billion in unsold stock.
ABFA reports that this figure shows an increase of almost £100m from last year and follows a pattern demonstrated continuously over the last 5 years. This figure is almost 16% of manufacturing sales nationally and is proving to be causing an issue with raising short-term finance and continuing growth. The funds held in unsold stock is resulting in across the board reductions in research and development, hiring and external BD which is starting to slow down the SME manufacturing growth figures.
ABFA go further to detail that the most commonly used resolution is asset based finance which, being secured, assists SMEs with more favourable lending costs.
Manufacturing vacancies in the UK are currently 6% of total vacancies with almost 48,000 vacancies in the last quarter. This figure whilst up slightly from the previous quarter is 2% down from the previous year. Further solutions to the unsold stock issue would likely increase investment in people across manufacturing. We have always found that the manufacturing sector has a buoyant candidate marketplace for roles of varying levels. Our clients who decide to advertise a manufacturing job with us, on average receive a very strong response rate particularly from the larger generalist job boards.