Manufacturing investment specialist Advent Partners LLP has welcomed David Cameron’s rallying cry to ‘reshore’ British manufacturing businesses, but warns that SMEs will need proper investment to fulfill that ambition.
The PM said in his speech at the World Economic Forum in Davos that a recent survey showed that one in ten UK SMEs is considering bringing production back from overseas to the UK, more than double the number heading east.
Mr Cameron said the UK would create a new organisation to aid reshoring, in the same way UK Trade & Investment has helped British companies with exporting. He talked of “a one stop shop to help business capitalise on the opportunities that reshoring brings.”
Andrew Ramsbottom, Managing Partner at Advent, said: “Of course we welcome the idea of manufacturing returning to UK shores – manufacturing is one of the bedrocks upon which Great Britain was built and is especially important in the Midlands, where we tend to operate.
“Talk is talk, though. A reshoring body similar to UKTI would be helpful in its way, but nothing would happen without capital investment.
“Manufacturing SMEs need good strategy and support management and – above all – access to viable funding to move operations back to this country.
“While government bodies would be able to offer objective advice and contacts and banks might be willing to consider funding, a private business investors like Advent would be able to offer the full package, by providing: quick access to working capital; more than 40 years’ combined experience and industry expertise; excellent strategy; and committed management support.”
Headed up Andrew Ramsbottom and David Gee, Advent is looking to invest in Midlands-based manufacturing or product-based businesses with up to £15 million turnover requiring capital and support management.
Advent specialises in providing private funding of up to £0.5 million per transaction to unlock potential and maximise future development and always holds an equity position within the business providing management support, driving change and delivering success.