Growing the Advanced Manufacturing Supply Chain

Advanced manufacturing businesses in the UK need good quality supply chains to support varying stages of the manufacturing process. However, UK supply chains are facing various market challenges that limit their ability to accelerate competitiveness and profitability. FDC explores how alternative investment could support SMEs to overcome funding challenges.

Manufacturing supply chains across England are constantly facing considerable levels of uncertainty, and changes to trading landscapes with increased demands for innovation adding to these pressures. Advanced manufacturing businesses in the UK need good quality supply chains, ideally locally based, to support the varying stages of their manufacturing process by providing a complete range of products and services. However, many SMEs lack the time and funding to explore and respond to new business opportunities which can lead over time to stunted growth and losing their competitive edge.

This is why the Advanced Manufacturing Supply Chain Initiative (AMSCI) was launched in 2012 and the AMSCI Recycled Fund in 2022. This provides loan funding that can help finance the growth of the UK’s industrial capabilities, capacities, productivity, competitiveness and improve UK’s supply chain’s resilience while helping to create and safeguard existing jobs.

What is the advanced manufacturing supply chain?

  • This consists of businesses, involved in producing, renewing and refurnishing products and / or services which contribute to a finished product or assembly.
  • They add valve by improving the quality, consistency and timescales of services, and products that they produce increasing their own and the supply chain’s competitiveness.
  • They may use innovative technologies and “smart” processes to achieve this.

The advanced manufacturing supply chain is increasingly using and dependant upon innovative technologies and methodologies to improve its competitiveness and profitability. These can include the use and development of new materials, artificial intelligence (AI), robotics and automation etc.

SME businesses through the increased improvements in their technologies and methodologies can improve the efficiency of their businesses and quality of their products and services whilst achieving the cleaner, scalable processes that many industry strategies are targeting.

By SMEs investing in increasing their capabilities and capacities usually through improving their technologies and methodologies this can help improve their competitiveness against other suppliers. This increased effectiveness allows for job creation and security, whilst ensuring they can better weather the storms of uncertainty.

A recent report commissioned by the Department of Business and Industry highlights that though manufacturing supply chains play a critical part to the UK economy, there are still market and system failures that prevent businesses achieving their full potential. One cited challenge was being able to access the finance needed to pursue growth and to scale up capabilities and capacities and / or introduce new technologies or R&D initiatives.

How can the AMSCI help?

  • Loan investment from £500,000 to £3m
  • To support advanced manufacturing supply chain innovation and competitiveness
  • Increasing capabilities, capacity and technological development of UK SME manufacturers and suppliers

Targeted at SME businesses across the whole of the advanced manufacturing supply chain it provides loan funding from £500,000 to help companies fund their future investment plans as well as increase their growth potential and support job creation.

Funding is potentially available for investment projects that look to increase capabilities, capacity and/or the introduction of new technologies and methodologies and create/safeguard jobs. Such projects will also assist the delivery of government policy on economic growth, e.g., assisting exports, inward investment, and reducing carbon emissions etc.

Who and what is eligible?

Companies need to demonstrate the following:

  • England based with a minimum of 2-year trading record.
  • All funding will be spent in England towards an investment project consisting of increasing their capabilities, capacity, competitiveness, innovation, and technological development and methodologies and innovation.
  • Have a clear funding route for bringing the investment project to market in a reasonable timescale.
  • The project could not otherwise go ahead or would be significantly delayed without requested funding.
  • The project will create new jobs and / or safeguard jobs in England.

Andy Green, Investment Director at FDC for the AMSCI Recycled Fund, said:

“At FDC, we understand that advanced manufacturing suppliers may face various obstacles when looking to expand their business. That is why the AMSCI Recycled Fund was launched - to tackle the difficulties which those businesses face by providing flexible investment and sharing our extensive knowledge of the industry. FDC’s mission is to not only provide finance but to ensure these businesses realise their long-term growth potential.”

If you would like to discuss a deal or have any questions about the AMSCI Recycled Fund get in touch or fill in our enquiry form.

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