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MGP
Report shows that weaker supply chains are hitting SMEs looking to recover from Covid-19
SME manufacturers already hit hard by Covid-19 are being squeezed between a huge drop in demand and weaker supply chains according to a new report out today .
64 % of the 289 respondents , who are engaged with the Manufacturing Growth Programme ( MGP ), said orders had dropped due to the pandemic , with furniture , software and general engineering the worst affected .
There was a similar number ( 59 %) experiencing issues with their suppliers . Nearly two thirds had seen delivery times lengthen , whilst 40 % had seen an increase in costs including products , materials and services .
This , along with managing production levels with depleted workforces , has led to more than half of SME manufacturers taking additional loans since March to help them navigate their way through Covid-19 disruption .
Worryingly , only 11 % of respondents felt that Brexit would offer a positive outcome for their businesses .
“ The results raise important questions about resilience , both up and downstream for small manufacturers , particularly given the uncertainties in the economy ,” explained Martin Coats , Managing Director at the Manufacturing Growth Programme ( MGP ).
“ Everyone was aware of the drop in orders due to the national lockdown and global issues , but what hasn ’ t been so well documented is the production problems some companies are facing and how disruption is causing major issues with pricing , costs and delivery performance .”
50 PECM Issue 47