The coronavirus pandemic is causing disruption and uncertainty across the world, and the manufacturing industry has been hugely impacted.
Demand is fluctuating across the industry and is totally dependent on end markets. For those continuing to operate, many are splitting shifts to ensure social distancing and minimise the risk of infection which is affecting production levels. To compound the issue, there are more issues now within European supply chains which has resulted in many UK manufacturers ceasing their operations for a period of time.
What support is available?
- Coronavirus Business Interruption Loan Scheme – A loan scheme backed by the British Business Bank, offering up to £5m for SMEs, fee and interest free for up to 12 months.
- Job retention scheme – Up to 80 per cent of wage costs reimbursed up to £2500 a month, backdated to 1 March and running initially for 3 months.
- VAT deferral – No VAT payments need to be made between 20 March and 30 June.
- Covid Corporate Financing Facility - Larger business may access a new lending facility being provided by the Bank of England (BoE).
- Statutory Sick Pay (SSP) reclamation for businesses - Businesses with under 250 employees will be able to reclaim expenditure for any employee, who for a period of up to two weeks, has claimed SSP because of coronavirus.
We will continue to update you on any support and clarity that the Government puts in place for manufacturing organisations.
Can you help?
Could your business help with the Government response to coronavirus?
The support needed includes:
- testing medical equipment;
- design of medical equipment;
- production of PPE;
- providing warehouse space; and
- assistance with transport and logistics.
Offer your support online via this new portal here
Webinar for manufacturers available
Make UK recently hosted a webinar for their members that outlines these support schemes in more detail. You can listen to a recording of this webinar here
Latest PMI figures
The latest PMI figures show the damage to the manufacturing sector caused by coronavirus. Find out more here.