One of the UK’s most successful industrial business support programmes comes to an end in June after helping the manufacturing sector to create or safeguard more than 12,435 jobs since 2016.
The Manufacturing Growth Programme (MGP), which is designed and delivered by Oxford Innovation Advice, will see funding from the European Regional Development Fund end and is now urging the Government and local authorities to ensure that tailored advice for manufacturing SMEs is quickly put in place.
A recent independent evaluation* of the programme found that MGP has delivered excellent value for money and achieved real results. The report revealed that over 95% of businesses surveyed expected their business to grow in the next five years, as a result of receiving support from the programme, with 63% identifying the development of new products as one of the key areas. In addition, 63% said they had already seen an increase in turnover, while 52% cited improved productivity as the main outcome of the support received.
MGP was established in October 2016 to address some of the main barriers to growth experienced by SME manufacturers. Since then, it has been providing grant funding for business improvement projects/capital projects and specialist mentoring from industry experts, with 4,564 companies assisted across the East and West Midlands, Yorkshire & Humber and the South East.
Its dedicated team of Manufacturing Growth Managers across England has delivered more than £13.9m of grants that, in turn, have unlocked over £25.7m of private sector investment. Importantly, the programme also generated £42,073 Gross Value Added (GVA) per employee in the companies supported.
Jane Galsworthy, Managing Director of Oxford Innovation Advice – the leading provider of business support programmes for SMEs – explained: “This independent evaluation further demonstrates that specialist business support programmes like our Manufacturing Growth Programme play a crucial role in supporting companies to overcome everyday challenges and barriers to growth. With the new UK Shared Prosperity Fund dividing up funding for business support at a very local level, there is a risk that businesses will only be able to access generic, low quality support which delivers lower value for money, and less measurable impact on businesses and the economy.”
“We’ve proven over the last seven years what targeted support can do for SME manufacturers, helping them accelerate growth, improve productivity and create jobs. With funding for MGP coming to an end, this creates a significant hole in specialist high quality support for SME manufacturers. The results of our own survey** of manufacturers revealed that 91% do not know where to turn for business support once this programme completes.”
She went on to add: “The manufacturing sector is critical to the UK economy as it accounts for around half of all UK exports and nearly 10% of the country’s overall economy (GVA).*** We are keen, therefore, to engage with government agencies and local authorities on how funding can be utilised to provide continued specialist support for manufacturers.”
MGP is the UK’s largest and leading business support programme for SME manufacturers, delivering consistent yet tailored support across 183 local authority areas. The findings of this latest evaluation report have proved that the MGP model has worked effectively to address market failures.
The report additionally highlighted how Oxford Innovation Advice adapted the programme during Covid-19 and Brexit to continue delivering high quality business support and effectively support manufacturing SMEs through these difficult circumstances. In the current economic climate, where businesses face multiple pressures from inflation, high energy prices, supply chain challenges and reduced consumer spending, the programme and its objectives are still as relevant now as they were back in 2016.
Jane concluded: “It is now more important than ever that businesses have access to high-quality business support services and specialist expertise to help them achieve their growth potential. This in turn will enhance the economy, create job opportunities and ensure the prosperity of our local communities.”
Verity Davidge, Director of Policy at Make UK, said: “Manufacturing is central to the future of the UK economy as a provider of high skill, high value jobs, especially in emerging technologies, digitalisation and the move to net zero. SMEs are the absolute backbone of the sector employing the vast majority of people and it’s vital that support programmes are maintained to ensure they can grow and prosper.”
Hear from clients of the Manufacturing Growth Programme:
We are extremely grateful to the Manufacturing Growth Programme for its support – we small businesses need it. Emma Bulmer, Director of Natural Paint UK Ltd, West Midlands.
Manufacturing is a jobs multiplier. For every manufacturing job we create 2.75 other service and supply jobs. Encouraging manufacturing growth is important for our economy. Graeme Hall, Executive Chairman, Brandon Medical Co Ltd, West Yorkshire.
The support and advice we have received through this programme has helped our company deliver on projects we would not have engaged in. This has led to increases in sales and development of technologies along with an increase in brand awareness. Richard Evans,Commercial Manager, Everquip Garage Equipment, East Riding of Yorkshire
My one word of advice to local authorities in charge of the UKSPF, please, please, please make sure you don’t reinvent the wheel – just support the Manufacturing Growth Programme and back an initiative that is already working. Laura Rudoe, Founder, Good Ventures Ltd. Hertfordshire.
Oxford Innovation Advice has over 30 years of experience in designing and delivering effective business support programmes that generate growth for businesses, local communities and the economy. The team has supported over 33,000 SMEs across the country and developed a suite of innovative resources and tools for businesses, policymakers and funders.
For more information on Oxford Innovation Advice, visit www.oxfordinnovationadvice.co.uk
*The external evaluation of phase 2 of the Manufacturing Growth Programme was carried out by Paula Rogers Consulting and the report can be accessed here: https://www.manufacturinggrowthprogramme.co.uk/wp-content/uploads/MGP2-Summative-Assessment.pdf
** Manufacturing Growth Programme’s SME Manufacturers survey report, published February 2023, can be accessed here: https://www.manufacturinggrowthprogramme.co.uk/sme-manufacturers-survey-report/
***MAKE UK’s Industrial Strategy Report: https://www.makeuk.org/insights/reports/industrial-strategy-a-manufacturing-ambition