COVID ID-19 Webinar: In Information and Support for Manufacturing SMEs Friday 27 th March 2020 | 11:00 – 12:30 swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Contents: • Introduction • Top questions from SME’s • What financial help is available • Supply chain support options • Risk management and business advice • NHS supply chain demands • Businesses showing growth/stability during this period • Questions? swmas.co.uk | 01278 767 010 | info@swmas.co.uk
In Introduction • SWMAS – supporting SME manufacturers across South West of England since 2002 • Many companies asking questions around how to handle COVID-19 • Some great ideas coming through and equally a number of challenges Objective To help share information and ideas across businesses in relation to how to deal with COVID-19 swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Common questions we have received • Can my business stay open? o How do I determine if I am an essential worker? o What do I need to do to mitigate the risks? • How do I access the grants and loans that government are talking about? • The grants the government are talking about don’t apply to me… • My order book has been lost – can you help? • We are inundated with demand – where can I find staff? • What is furloughing of staff – who can help swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Coronavirus – context of f the sit ituation RESPONSE PHASE RECOVERY PHASE THE NEW NORMAL Public Health Crisis Economic Crisis Capitalising for growth in new paradigms Economic Performance Time swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Init In itial areas of f support requested fr from SMEs* • Only 12% of manufacturing businesses who have responded indicate the current level of government support is enough for them to survive the crisis • 86% of respondents wanted to know more information about what financial support is available for SME’s and how to access this support • 27% of respondents would like help and support with their supply chain during this period • 23% of businesses would like advice for risk management and strategic planning th Mar (25 th *D *Data tak aken fr from om curr current Man anufactu turin ing Bar arometer sur survey - (25 arch 2020) swmas.co.uk | 01278 767 010 | info@swmas.co.uk
COVID-19 and Manufacturing Businesses • Manufacturing and Construction businesses CAN stay open, , but: o Vulnerable people must remain at home in isolation o Those who can work from home MUST do so o Social distancing applies whilst at work – 2 metre distance between workers • Exp xpect a lis list to be produced by government explaining which in industries/sectors are permitted to stay open, , and which ones must clo close - Current government lis list as of f 26/03/2020 swmas.co.uk | 01278 767 010 | info@swmas.co.uk
What is is essential? • This is a grey area at the moment and is being approached on a company by company basis • MakeUK are pushing for clarity on whether the interpretation should be for the manufacture of essential items or manufacturing • Evidence of social pressures are being placed on employees travelling to work Issue employees with letters on company headed paper to explain why it is necessary to travel to work as many are being stopped by Police swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Practical steps manufacturers are taking to achieve a safe working environment? • Communicate, communicate, communicate • Safety first – if a worker is ill make sure they stay off or go home if they come on site • Identify the essential workers within your business that have to be on site • Split shifts – the working environments are often designed for maximum occupancy • Add shifts with fewer numbers to try and keep up with demand swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Fin inancial Support • De Deferrin ing VAT payments – au automatic holi oliday until til Jun June • Busi siness In Interruption Lo Loan Sc Scheme o Due diligence must still take place by the lender o Full security guarantees are normally still required o LI LINK to o loa loan sch cheme crit criteria ia and in information • Sm Small ll busi siness grant fu fundin ing o One-off grant of £10,000, eligible if: 1. Your business is based in England AND AND 2. You are a small business and already receive SBRR and/or RRR AND AND 3. You are a business that occupies property o No need to apply, your local authority will write to you o LI LINK to o small busin iness gr grant fu funding in information swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Fin inancial Support • Coronavirus jo job retention scheme o Provides employers with the ability to keep employees on the pay roll at 80% of their monthly salary up to £2,500 per month funded by the government o Applies to any employees that would otherwise have been made redundant o Needs to be agreed between the employer and employee o Government portal for registering furloughed employees will be up and running soon o Payments expected to start by the end of April 2020 ** LINK to Government Business Financial Support page ** swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Poll ll: Accessing Government Support Please indicate which of these schemes your business is planning to access Results: C) SMALL BUSINESS GRANT 4 FUNDING B) CORONAVIRUS BUSINESS 6 INTERRUPTION LOANS A) CORONAVIRUS JOB RETENTION 41 SCHEME NO OF VOTES swmas.co.uk | 01278 767 010 | info@swmas.co.uk
SUPPLY CHAIN FACT CTORS • Check with your customers and suppliers…what are their plans to get through the current crisis? • Review which market sectors you operate in and the demand changes associated with this • Factory shut downs within the supply chain are starting to result in parts shortages • Price monitoring for key goods – UK task force being set up to monitor price hikes on pharma and food goods swmas.co.uk | 01278 767 010 | info@swmas.co.uk
SUPPLY CHAIN – KEY AREAS St Strategic ic Im Impact ✓ Heavy burden on business leaders/senior management to balance the above issues ✓ Deferring key business investment and medium to longer term strategy ✓ Risk of long term loss of key resources and capabilities ✓ Disruption and breakdown of customer relationships for suppliers because of different approaches through the crisis ✓ Managing change of supply swmas.co.uk | 01278 767 010 | info@swmas.co.uk
SUPPLY CHAIN – KEY AREAS People le Reso source ✓ Under resource as a result of non-attendance by employees (travel and quarantine restrictions) ✓ Associated costs with the above ✓ Increasing in demand as a result of COVID-19 Virus (lack of skilled/general people resources availability) ✓ Lack of transferability of resource due to travel restrict swmas.co.uk | 01278 767 010 | info@swmas.co.uk
SUPPLY CHAIN – KEY AREAS Lo Logis istic ics Disr isruptio ion ✓ Restrictions on shipping to customer resulting in associated payment/cash flow (WIP & Finished Stock) ✓ Inward delivery pipeline – supplies being disrupted by Import shortages (e.g. electronic components from China) ✓ Increased demand and the ability to bring in new supply capacity quickly ✓ Competition and priority addressing procured requirements to maintain existing or increased productivity swmas.co.uk | 01278 767 010 | info@swmas.co.uk
SUPPLY CHAIN Department for r In Internatio ional l Trade (DIT IT) ) can support businesses by: ✓ providing assistance with customs authorities to ensure smooth clearance of their products ✓ offering advice on intellectual property and other issues with business continuity If you have an advisory or professional services firm that can help UK companies to find alternative suppliers, visit the following website for further information. swmas.co.uk | 01278 767 010 | info@swmas.co.uk
OPPORTUNITIES FOR SUPPLY ✓ Check public procurement websites ✓ Look into Openopps, a free resource that tries to pull together all open source tenders – www.openopps.com swmas.co.uk | 01278 767 010 | info@swmas.co.uk
HOW WE CAN HELP If you are struggling to source supply at this time please let us know we have access to over 4000 companies across the South West of England and have helped companies: 1. Source challenging products 2. Aggregate purchase to be able to access components due to high demand i.e. Multi Layer Ceramic Capacitors 3. Support companies through the a structured source change process swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Poll ll: Dis isru ruption to your supply chain What supply chain challenges are you currently seeing? Results: H) PAYMENT UPFRONT FOR 0 GOODS G) PRICE INCREASES FROM 0 SUPPLIERS F) PAYMENT TIMES SHORTENED 0 FROM SUPPLIERS E) PAYMENT DELAYS FROM 8 CUSTOMERS D) NEW ENQUIRIES 1 C) SUPPLIERS SHUTTING DOWN 14 B) ORDERS BEING CANCELLED 7 A) CUSTOMERS SHUTTING DOWN 20 NO OF VOTES swmas.co.uk | 01278 767 010 | info@swmas.co.uk
MARKETS OVERVIEW swmas.co.uk | 01278 767 010 | info@swmas.co.uk
Busin inesses showing growth/stability During this tough period for most manufacturing sectors, there are some industries/sectors that are showing stability/growth that you may be able to get involved with: • Anyt ything in in th the NHS su supply ly ch chai ain • Food in industry ry • Pac ackaging in industry ry (f (food/medical/pharmaceutical) • 3D 3D Prin rinting swmas.co.uk | 01278 767 010 | info@swmas.co.uk
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