Many SMEs have had no choice but to extend the life of their existing assets due to ongoing supply chain difficulties, highlighting the importance of good supplier and inventory management.
A survey of over 500 businesses by Paragon Bank found that 30 per cent of SMEs had operated existing machinery beyond its expected lifespan over the past 12 months. A similar proportion said they had acquired pre-owned machinery due to unavailability of new equipment, while a fifth have had to refinance existing assets.
The findings correspond with separate research last year which found the demand for second-hand equipment and machinery in the UK had reached record-levels.
Supply chain risks can be managed and mitigated to a certain extent with an effective supply chain strategy and optimised inventory management.
Our specialist Manufacturing Team re-focused much of their support to these areas in the aftermath of the COVID-19 pandemic, delivering supply chain strategy workshops through the Hub’s Strive and Thrive webinar series.
One of the many Greater Manchester manufacturers supported included Bury-based Multiwood Products Ltd, which suffered “massive holes” in its stock during the pandemic, leaving it with little choice but to bring some of its manufacturing in-house.
Following support to secure funding and embed good manufacturing practice across its factory, the business went from being able to manufacture 100 units in-house per month to 2,000, in spite of supply chain challenges.