Calls made for more support for manufacturers - as a third make redundancies

A new report is asking government for further support on the back of the largest survey of SME manufacturers in England.

The Manufacturing Barometer found that 80 per cent of firms in the south took the decision to furlough staff, and almost a third (30 per cent) have already made redundancies.

The survey also found that this figure is set to remain the same as the job retention scheme tapers off, with 31 per cent indicating further job losses between now and the end of the year.

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Conducted by SWMAS (South West Manufacturing Advisory Service) and the Manufacturing Growth Programme (MGP), the report showed that 37 per cent of companies had accessed Coronavirus Business Interruption Loans, and a similar number took advantage of Bounce Back loans.

One such firm is Quattro Foods, a food manufacturer in Portfield Road, Portsmouth.

It had enjoyed a fantastic start to the year, with new contracts secured, 24-hour shifts introduced to deliver additional capacity and a £90,000 investment signed off on new filling technology. Then Covid-19 struck and it lost 98 per cent of its business overnight. It furloughed 30 of its 37 staff and received a Coronavirus Business Interruption Loan (CBIL).

SEE MORE: 12 businesses that have closed down since lockdown started in the Portsmouth area

Managing director Sam Brower said: ‘That really has been a godsend. The issue we have is that there is no end point in sight and, even though some of hospitality has reopened, it is nowhere near the levels we need to return to former volumes. And then we have October looming large, a watershed moment where the furlough scheme will come to an end and business and property rates will start being paid again.’

Martin Coats, managing director at MGP, said VAT payment holidays could help, as well as an extension to the furlough scheme which is due to end next month.

He said: ‘The furlough scheme has protected thousands of jobs, but the government may have to consider additional support until sales and revenues are more consistent or start to reflect levels seen prior to the pandemic.’

He added: ‘Over half of manufacturers have told us that they are either just surviving or recovering and this, along with the other data, tells us that there is an urgent need for further business support, which the government could help with.

‘Industry is very resilient, but it is difficult to plan for sales stopping overnight across numerous sectors and then you’ve got the added complications of supply chain interruptions and trying to organise factories that are Covid-19 secure.’

For more go to manufacturinggrowthprogramme.co.uk

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