The Manufacturing Growth Programme (MGP), a cornerstone of industrial support for UK manufacturers since 2016, is set to end in June.
This change has provoked industry concern and urgent calls for the Government to ensure tailored advice for manufacturing SMEs continues unabated.
The Legacy of the MGP
The MGP, expertly designed and implemented by Oxford Innovation Advice, has been instrumental in providing grant funding for business improvement and capital projects, in addition to expert mentoring delivered by industry leaders.
Over the past 7 years, 4,564 companies have been supported across the East and West Midlands, Yorkshire & Humber and the South East.
This European Regional Development Fund-backed programme has delivered “excellent value for money” and “real results,” according to an independent evaluation.
Yet, with funding ceasing next week, it leaves a vacuum in the landscape of business support for SME manufacturers.
The Impact of the MGP
This programme’s impact resonates loudly in the voices of the entrepreneurs it has helped.
An impressive 95% of companies who benefited from the MGP anticipate their business will flourish in the next five years.
Notably, product development was identified as a key growth area by 63% of surveyed businesses.
A further 63% reported a spike in turnover, while 52% noticed improved productivity, demonstrating the tangible benefits of the MGP’s strategic support.
Funding and Support
The MGP’s strategy of providing grant funding and specialist mentoring for business improvement and capital projects has boosted thousands of SME manufacturers.
The programme’s Manufacturing Growth Managers have dispensed over £13.9m in grants, which in turn sparked north of £25.7m of private sector investment.
The MGP has therefore been a catalyst for economic growth, generating a considerable Gross Value Added (GVA) of £42,073 per employee within supported companies.
The Future without the MGP
However, the impending end of the MGP raises serious questions about the continuity of support for SME manufacturers.
Jane Galsworthy, Managing Director of Oxford Innovation Advice, warned of potential repercussions due to the new UK Shared Prosperity Fund (UKSPF).
She argued that this funding could result in low-quality, generic business support as it will be divided up at a very local level.
The Need for Continued Support
Given that manufacturing contributes significantly to the UK’s exports and makes up nearly 10% of the country’s overall GVA, the sector cannot afford a lack of specialist support.
Furthermore, a troubling 91% of manufacturers admitted they were unsure where to seek business support after the MGP concludes.
This uncertainty underscores the need to engage with government agencies and local authorities to find the best way to continue the support currently provided by the MGP.
Adapting to New Challenges
The MGP’s legacy includes its adaptability, having adjusted its programmes during the upheavals of Brexit and the Covid-19 pandemic.
Despite the current economic climate, characterised by inflation, high energy prices, and reduced consumer spending, the MGP’s objectives remain as pertinent as ever.
As Galsworthy stated, high-quality business support and specialist expertise are now more important than ever to fuel growth potential, stimulate the economy, and generate jobs.
In concluding – and echoing the sentiment expressed by Verity Davidge, Director of Policy at Make UK – it’s crucial that support programmes are maintained to ensure the continued prosperity of SME manufacturers.
These companies, pivotal to the UK economy and particularly vital in the drive towards emerging technologies and net zero, deserve continued, tailored support to help them grow and prosper.
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