How we encourage investment in the manufacturing industry

Make sure to engage with your bank as early as possible and prepare fully for your initial conversation. This will help them understand your business needs and how they can best meet them.

Your bank will make you aware of any current schemes and initiatives you could take advantage of, such as the Annual Investment Allowance.

Capital investment should always be central to your business plan, and spending on manufacturing machinery is no different. You should ensure that any asset you choose will contribute to your organisation’s overall objectives and plans for growth.

When choosing equipment to invest in, make sure it will meet the requirements of every part of your business.

If you’re buying equipment from outside of the UK, does your bank have facilities to manage the import process securely? Or do you need specialist support? Capital Import Finance, a product offered by Lombard, could help you achieve this.

To understand the full cost of ownership you should consider additional expenditure, such as ongoing maintenance, training and installation costs.

Your bank or finance company isn’t your only audience when you’re buying manufacturing machinery. You should also articulate the benefits of the investment to stakeholders inside your company too, so everyone can understand the decision.

Before you receive your new asset, consider using LEAN practices or seeking advice on how to improve your efficiency and reduce costs.

Speak to your financial advisors and accountants about your decision to acquire new machinery. They will be able to help you create financial plans for large investments, which will strengthen your application for funding.

Choose an appropriate investment appraisal system to get a clear idea of what the return on your financial outlay will be.

Plan a way to measure the success of your investment throughout the life of the asset. Understanding what you’ve achieved can help you plan for the future and may add weight to any further proposals for investment.