British Made Awards 2026 Best Regional Building Maintenance Company 2026 & Specialist Building Contractor of the Year 2026 KBH Haus is a leading building and construction services company based in Loughton and working across the Greater London region. The company, which was recently rebranded from KBH Building Services to reflect the multifaceted service it provides, specialises in windows, doors, and fire safety – in addition to the planned work and maintenance services it has been recognised for specifically in this programme. Delivering this encompassing service to buildings across the public and private sectors, we caught up with CEO Kyle Hollyomes and CFO George Karaargirov for more on its work.
British Made Awards 2026 Phone: 01283 365204 Website: smenews.digital Sofi Parry Senior Editor No information contained on or in this website constitutes investment advice or an offer to invest or to provide management services and is subject to correction, completion and amendment without notice. Neither AI nor any of its associated entities are authorised to give financial advice of any nature nor are they regulated by the Financial Services Authority. Prior to making any investment, AI recommends that any prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. AI Global Media, Ltd. (AI) takes reasonable measures to ensure the quality of the information on this web site. However, AI will not assume any legal liability or responsibility for the accuracy, correctness or completeness of any information that is available through this web site. If errors are brought to our attention, we will try to correct them. The information available through the website and our partner publications is for your general information and use and is not intended to address any particular finance or investment requirements. In particular, the information does not constitute any form of advice or recommendation by us or any of our partner publications and is not intended to be relied upon by users in making or refraining from making any investment or financial decisions. Appropriate independent advice should be obtained before making any such decision. Any arrangement made between you and any third party named in the site is at your sole risk and responsibility. SME News is proud to present the British Made Awards 2026, a celebration of the craftsmanship, creativity, and entrepreneurial spirit that define the UK’s manufacturing and production industries. From artisan makers and innovative SMEs to established manufacturers and export leaders, this national awards programme recognises the businesses keeping Britain’s proud manufacturing legacy alive – while driving it boldly into the future. Championing Quality, Heritage, and Innovation British manufacturing continues to be a cornerstone of the UK economy, contributing over £217 billion in output and employing more than 2.6 million people nationwide. In 2026, the sector stands at the intersection of tradition and transformation – with sustainability, digital innovation, and skilled craftsmanship reshaping what “Made in Britain” means today. From precision engineering and sustainable textiles to homegrown food production, luxury goods, and ethical design, UK producers are showing the world that quality, responsibility, and ingenuity remain hallmarks of British enterprise.
Contents 5. KBH Haus: Best Regional Building Maintenance Company 2026 & Specialist Building Contractor of the Year 2026 6. Falcon Tenders Ltd: Best Bespoke Superyacht Tender Builder 2026 7. Denzil Skinners & Partners: Best Bespoke Jewellery Design Company 2026 – Edinburgh 8. How Technology is Revolutionising Efficiency Across Manufacturing Industries 10. The UK Manufacturing Boom and the Race to Find Flexible Facilities 12. Bullet-Proofing Your Finances: How Manufacturing SMEs Can Tackle Cash Flow Issues
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The wide range of services and tremendous scope covered by KBH Haus is made even more impressive considering that it started only as one man with a van back in 2014. Today, under the careful leadership of its founder, Kyle Hollyomes, the company has grown to deliver thousands of monthly repair and maintenance call-outs and installations. Alongside these multiple teams of NVQ-trained fitters and installers who work across multiple Greater London contracts and postcodes on a daily basis, KBH Haus is also responsible for three manufacturing plants, one for timber windows, one dedicated facility for firedoors and another for UPVC windows and doors. These plants were set up in response to the site teams on the ground being unhappy with the products and service they were receiving from third-party suppliers, leading them to establish their own manufacturing division. This is just one example of their innovation and commitment to client service. Commenting on this pioneering spirit, George told us: “We ask ourselves daily why things in the industry are done in a certain way and if they can be done better, as well as what we need to introduce as a process or system, and how we can make our service delivery and products even more efficient.” This mindset has also seen the team invest in the creation of their own AI powered software system and mobile app to enhance the productivity of the organisation and allow its various teams to be easily managed for compliance, health and safety and quality delivery while scaling up. The success of these initiatives is reflected across some of the impressive statistics KBH Haus boasts, including completing projects to a value of more than £100m, 100% of the recyclable waste generated is recycled, growing its manufacturing capacity 400% year on year, and delivering over £250k in annual social value. Underpinning all of these other figures is the 98% on-time job completion rate the team are proud to display, a figure that few of its contemporaries could begin to match. “At every step, for every contract we work on, we care enough to listen to the client and the community, changing our delivery to satisfy their needs.” KBH Haus’ refreshingly straightforward method of putting client satisfaction above all is indicative of a wider back-to-basics approach, with success measured simply against its ability to keep the client happy by doing the job that it was hired to do at the price agreed and within the allotted timeframe. The same ethos is applied to its team, who are kept happy by leadership fulfilling the agreed terms and offering a large degree of freedom – provided targets and KPIs are met. Kyle tells us “Being clear with our teams is key to retaining them. A worker wants to know what is expected of them, what they will get paid if these expectations are delivered and what are the rules they must follow while delivering the work. I always try to make this simple and clear and this communication strategy has been a key to our success.” Finally, George shed some light on KBH Haus’ next steps, telling us: “We are continuing our strategy to bring more of our services in-house and to manage their provision from end-to-end so that we can de-risk their provision for the end client. In order to do that we are continuing our work on the development of Mi-Haus, our own mobile app and IT infrastructure.” The company has also created a dedicated Social Value division, headed by Kaijah McMahon, in response to the ever increasing need for private companies to do more for their communities. The establishment of the HAUS Academy in early 2026, is a pioneering initiative to offer regular events for workshops, training and personal skill development to any member of the community for free. Spaces for the events can be booked from the company’s website and are led directly by experienced staff from the KBH HAUS family who all invest their own time. Regardless of whether it is leveraging its manufacturing plants to offer bespoke timber and UPVC windows and doors for private, residential, and commercial sector customers; utilising its status as a Trustmarkcertified contractor for wall insulation and SHDF works, or carrying out emergency and routine maintenance and repair works, KBH Haus’ dedication to going above and beyond for its clients continues to set it apart, resulting in this deserved recognition. Contact: George Karaargirov Company: KBH Haus Web Address: https://kbhhaus.co.uk/ KBH Haus is a leading building and construction services company based in Loughton and working across the Greater London region. The company, which was recently rebranded from KBH Building Services to reflect the multifaceted service it provides, specialises in windows, doors, and fire safety – in addition to the planned work and maintenance services it has been recognised for specifically in this programme. Delivering this encompassing service to buildings across the public and private sectors, we caught up with CEO Kyle Hollyomes and CFO George Karaargirov for more on its work. Best Regional Building Maintenance Company 2026 & Specialist Building Contractor of the Year 2026
British Made Awards 2026/ 6 Best Bespoke Superyacht Tender Builder 2026 Southampton has long been associated with some of the world’s most spectacular ships, and whilst it is predominantly known as a port for ocean liners and cruise ships, it is also home to key players in yachting. One such company is Falcon Tenders Ltd, the leading builder of high-performance superyacht tenders. Producing custom limousines and open-crewed launches for discerning yacht owners everywhere, we caught up with Mark Pascoe, the founder, director, and CEO of the company, to find out more. Crafted with passion and designed to inspire, Falcon Tenders takes the art of heritage boatbuilding and brings it to the superyacht tender market. British craftsmanship underpins the company at every turn, with the highly skilled workforce it boasts sharing more than 150 years of experience in traditional shipbuilding, across which they have built hundreds of tenders for some of the most impressive superyachts in the word. The skill inherent across Falcon Tenders is seen through its name, taken from Mark Pascoe’s involvement in building two custom tenders for the Maltese Falcon superyacht in 2005. This was a highlight in a career often touted as one of the most impressive in the industry, with some of Mark’s other achievements including building championship-winning powerboats and running the official Lamborghini Class-1 offshore racing team. Mark then started building powerboats under his own name, pivoting to superyacht tenders in 2021. However, Mark’s is not the only legacy name in boatbuilding and powerboat racing to have found its way into the company, as Dean Stoneman, a key figure in motor racing and a renowned producer of XSMG powerboats for customers across Europe, is the second director here. It is the combined prowess and expertise of this leadership that has allowed the award-winning team here to hone the techniques and fine-tune the skills necessary in building yacht tenders reflective of the highest levels of comfort, performance, and owner experience. Across the more than 200 full-custom yacht tenders built to order by Falcon Tenders over the last five years or so – each of which is defined by the blend of in-house technical expertise and visionary concepts penned by the biggest names in superyacht designs – one project that stands out is the limousine tender the team recently crafted exclusively for the 141m M/Y Yas. An extension of the distinct identity of its mothership, this automotive-inspired tender has been crafted with architectural precision and artistic intention. A truly luxurious bridge between the sea and the shore, this limousine tender has been sculpted from lightweight composite materials, giving it the optimal strength-to-weight ratio to balance comfort and speed. Everything from its two-tone paint scheme – which complements the livery on the Yas – to its wraparound glass windows has been designed to connote an experience reflective of the luxury that awaits once inside. Stepping into the tender, the connection it has to the Yas is immediately apparent, as its interior has been painstakingly crafted to replicate the materials and colour scheme of the mothership, from the custom finishes on the walls through to the fabric selections, which are exact matches across the likes of tone, texture, and trims. The same care has been taken across the hand-tufted custom carpet and the plush, marine-grade leather seats, with the tender even finished off with luxury touches including climate control and smart lighting. Finally, the cutting-edge marine technology encompassing this lavish interior is guaranteed to offer a smooth and quiet performance. Starting with its deep-V hull, which has been optimised for stability and low spray, a gyroscopic stabilisation system enhances ride comfort, whilst the option for hybrid propulsion allows for electric-powered cruising in more sensitive areas, before kick-starting the high-performance, diesel-powered engine when that extra boost is required. As this shows, the tender has covered all bases. Commenting on this project, Mark told us: “From the outset, this project was about more than building a tender. It was about creating an extension of the Yas herself. Every detail, from the glazing to the interior finishes, had to feel like it belonged to the mothership. It’s a true reflection of design continuity at the highest level. We took cues from modern automotive design to give the tender a bold, confident presence on the water, as well as focusing intently on performance, engineering, and delivering a ride as refined as the appearance.” By crafting tenders that are as much statement pieces as they are practical vessels, Falcon Tenders Ltd lives up to its name as the premier builder of high-performance superyacht tenders, with every tender being crafted with passion and built to perfection thanks to Mark and the team here. On the back of its steadfast dedication to the client, this is a company fitting of being named the Best Bespoke Superyacht Tender Builder 2026. Contact: Mark Pascoe Company: Falcon Tenders Ltd Web Address: https://falcon-tenders.com/
Truly bespoke jewellery feels like a rarity in today’s world of mass production, but this is probably why the items crafted by Denzil Skinner & Partners in Edinburgh feel so special. The team of Amanda and Denzil use their more than 60 years of combined experience within the trade to provide a unique, deeply personal service that sees them redesign old jewellery or create new, bespoke jewellery and silver commissions. For more on this service, we caught up with Amanda and Denzil. Best Bespoke Jewellery Design Company 2026 – Edinburgh Whether a client wants to upcycle their old jewellery or commission a new design enriched with timeless character and charm, leading Edinburgh jewellers Amanda and Denzil can help. They established the business some 12 years ago with their boutique shop located in Stockbridge, and with Amanda bringing more than 30 years of expertise as a jewellery designer and business owner to the table, and Denzil leveraging his skills as a former director at Hamilton & Inches – where he specialised in silver commissions – this is a location quite unlike any other. Discussing the partnership at the heart of the business, Amanda and Denzil told us it works simply because they are equal. Amanda is the principal designer within the business, whilst, Denzil, who served in the Armed Forces before entering the jewellery industry, spearheads its bespoke silver and institutional commissions, which include military silverware. Combined, Denzil Skinner & Partners stands for a discreet and personal service in an era where sales targets and short-termism define the world of jewellery. The difference that the company stands for in this space begins with its flagship service, which is the bespoke creation/redesigning process mentioned above. The aim here is to give every client a fun and friendly experience, and this starts with the team advising on the best approach concerning a piece, be it being kept, sold or broken up and repurposed to offer the optimal balance between enjoyment and sentimentality. What follows is a free consultation, design and cleaning service, and if the client decides to break up the existing piece, then Amanda and Denzil will process all of the old gold and take its value off the cost of the new commission. Once the design is finalised, the team will work either exclusively by hand or with help from CAD technology to complete the work to the highest standard, following design and budget requirements down to the letter. “We embrace the fully hand-made approach or use CAD technology, dependent upon the most appropriate method for an agreed design whilst supporting the UK trade. It is vital to us that we provide the freedom for our clients to design what they want and then for us to use the most appropriate manufacturing techniques in its creation.” This same approach is employed when it comes to engagement rings, with Amanda and Denzil giving clients the option to repurpose an old or inherited jewel into a modern design. However, more often they will source the gemstones from their valued and trusted dealers to design and create a totally new ring. A client’s preferences and budget will always be considered as their bespoke engagement ring is designed, with the team preparing a selection of stones from which the client can make a choice. They will explain the differences in the stones in terms of quality and value to ensure the outcome is a combination of its aesthetic and monetary value. Of course, this is just the beginning, as Denzil Skinner & Partners covers everything from dress and signet rings to earrings, pendants, bracelets, brooches, and gentlemen’s jewellery (cufflinks, dress studs, tie pins, rings etc.) across this bespoke approach, solidifying it as Edinburgh’s leading bespoke jewellery brand in the process. And yet, there is much more to the company than jewellery, as its bespoke silver commissions show. Having been tasked with completing a number of private, military, and sporting trophies over the years, Denzil Skinner & Partners has also had the opportunity to demonstrate its prowess as one of Scotland’s leading silver designers. A favourite project for the team was creating a silver copy of the Sutton Hoo warrior’s helmet; an AngloSaxon helmet found in 1939 during the excavation of the Sutton Hoo ship burial. The faded original helmet is today on display in the British Museum, whilst the silver copy is admired in its new home. Whilst the future of jewellery and silversmithing in the UK is far from certain, Denzil Skinner & Partners continues to serve as the embodiment of why it is so special. Breathing new life into old pieces or creating new ones from scratch, these creations will stand the test of time in a way that cheap, high-street jewellery simply will not. Thus, on the back of its distinction, we are delighted to recognise the company with an award. Contact: Denzil Skinner & Amanda Egerton King Company: Denzil Skinners & Partners Web Address: ww.denzil-skinner.co.uk
British Made Awards 2026/ 8 The global manufacturing landscape is changing faster than ever. Every production floor, from automotive plants to small workshops, is striving to achieve greater precision, lower waste, and faster turnaround times. New tools and connected systems are making that possible. In the first quarter of 2025, global manufacturing production rose by 1.3% and exports by 1.4%, according to the UNIDO. This growth reflects the ongoing strength of innovation in enhancing productivity worldwide. Still, manufacturers face familiar challenges: fluctuating material costs, skill shortages, and rising sustainability demands. This article explores how technology is helping industries modernise operations, improve efficiency, and prepare for a more agile and competitive future. The Shift Toward Smart Manufacturing Factories today are more than mechanical setups. They are intelligent systems built around data, automation, and connectivity. The concept of “smart manufacturing” focuses on making every part of production measurable and controllable. Imagine a workshop where machines detect issues before they happen, or production schedules automatically adjust when materials run late. This is not a vision of tomorrow—it’s happening today. Even smaller manufacturers are adopting these changes through affordable IoT tools and smart sensors. These solutions allow them to track equipment health, plan maintenance, and reduce downtime. The outcome is consistent production, improved safety, and stronger profitability. Precision Tools Powering Modern Production In modern manufacturing, every small detail counts. A single inaccurate cut or misalignment can affect product quality and increase waste. That’s why companies are focusing on precision tools that make each process faster, cleaner, and more consistent. These systems not only improve results but also reduce manual effort and downtime. Advanced equipment, such as a plasma cutter, is a prime example of how technology enhances accuracy and efficiency in metal fabrication. It allows operators to handle various materials with clean, reliable cuts that minimize rework. Many technology innovators, including those at Hypertherm, are shaping the next generation of cutting systems that deliver faster performance with lower operating costs. Their continuous improvements in design and control enable manufacturers to maintain high-quality standards across various production settings. These innovations demonstrate how precision-driven tools are helping to build a more adaptable and sustainable manufacturing future. Automation and Human Collaboration There’s a common concern that automation could replace workers. In reality, it’s helping them do more with less effort. Machines handle repetitive or physically demanding jobs, while people focus on problem-solving and innovation. For example, collaborative robots—or cobots—are now assisting technicians with assembly, welding, and quality inspection. This not only improves safety but also increases speed without sacrificing accuracy. Think about it: would you rather spend hours tightening the same bolts, or oversee systems that handle complex operations automatically? When humans and machines work together, productivity rises, and employees gain valuable new skills in digital operations. Data-Driven Insights for Predictive Operations Data has become one of the most valuable assets in the manufacturing industry. With connected devices and monitoring tools, factories can now interpret real-time performance information. Predictive maintenance alerts operators before breakdowns occur. This prevents production delays and reduces the need for emergency repairs. A medium-sized machinery plant that introduced sensor-based maintenance reduced equipment downtime by almost 30% within a year. When decisions are guided by data rather than guesswork, production lines become smoother and more reliable. Predictive systems give managers visibility into what’s happening at every level of the process, creating a foundation for long-term stability. Sustainability and Energy Efficiency in Modern Plants Efficiency now includes environmental responsibility. Manufacturers everywhere are finding ways to balance output with sustainability goals. Cleaner production How Technology is Revolutionising Efficiency Across Manufacturing Industries
methods not only reduce emissions but also lower operational expenses. Examples of smart changes include: • Reusing waste heat from furnaces to power nearby equipment. • Implementing solar systems or renewable power sources. • Installing energy-smart drives that cut consumption by up to 20%. Even modern cutting systems are designed to use fewer consumables and less power. By combining precision with eco-conscious design, the manufacturing industry is demonstrating that productivity and sustainability can coexist. The Future of Manufacturing: Intelligent Integration The next era of industrial progress lies in integrating smart tools with advanced software. Artificial intelligence, digital twins, and cloudbased systems are transforming how factories think and respond. Imagine a production model that tests every workflow virtually before a single part is made. Or a supply chain that automatically adjusts to new demand. These intelligent systems are turning traditional plants into self-optimising networks. For small and mid-sized businesses, the benefit lies in scalability. Technology can start with simple automation and expand into full digital control as operations grow. Companies that adapt early will stay competitive as the market continues to evolve. Conclusion Technology has become the driving force behind global industrial progress. From automated tools to predictive analytics, every innovation helps industries work smarter and deliver better results. The real transformation occurs when manufacturers align their skills, data, and technology toward a shared goal of progress. Those who adopt these changes today will be better equipped to face the challenges and opportunities that define the future of production.
British Made Awards 2026/ 10 A recap of the UK’s Advanced Manufacturing Sector Plan Published last year, the Advanced Manufacturing Sector Plan details four ways which collectively will aim to increase annual business investment in advanced manufacturing across the UK from around £21 billion currently to £39 billion by 2035. These steps include reforming the business environment for long-term stability and certainty and prioritising six manufacturing sub-sectors, which researchers believe have the highest potential for growth over the next ten years: 1. Advanced materials 2. Aerospace 3. Agri-tech 4. Automotive 5. Batteries 6. Space It should be no surprise to see the spotlight being put on the UK’s advanced manufacturing sector in such a positive way. This industry already directly supports an estimated 760,000 jobs and boosts the nation’s economy by over £82 billion gross value added (GVA) every year. Productivity in the sector has also increased by 202% between 1997 and 2024. The rise of the UK’s AI sector As has been the case with many industries in recent years, artificial intelligence (AI) can boost advanced manufacturing practices by improving adaptability, efficiency and precision. The UK’s AI sector already looks to be in a strong place. According to a statement released by the Department for Science, Innovation and Technology, £2.9 billion was invested in British AI companies in 2024 alone. NVIDIA Founder, President and CEO Jensen Huang also recently acknowledged to BBC News that “the UK will be an AI superpower”. His comments were made as a £31 billion “Tech Prosperity Deal” was agreed between several US tech firms and the UK government. However, an interesting note has been made in the Advanced Manufacturing Sector Plan. A 2024 Make UK report was referenced within the document, which found that only eight per cent of UK manufacturers had implemented AI and machine learning practices into their operations successfully. Just seven per cent of the manufacturers involved in the research said that they were well-versed in AI applications too. Fortunately, the AI Opportunities Action Plan aims to ramp up the adoption of AI technology and practices in the UK, especially with the creation of dedicated AI Growth Zones to accelerate the build out of AI infrastructure throughout the nation. When setting out the UK government’s Advanced Manufacturing Sector Plan last summer, Sarah Jones MP, Minister of State for Industry, stated ambitions for the UK to be recognised as the best place to start, grow and invest in advanced manufacturing anywhere across the globe by 2035. There are plenty of steps being put in place which should help to make this vision a reality, with Portakabin, the UK’s leading modular building provider, on hand to explain how modular buildings can also help small and medium-sized enterprises (SMEs) to adopt advanced manufacturing practices quickly. The UK Manufacturing Boom and the Race to Find Flexible Facilities
As the AI sector becomes larger in the UK though, SMEs making use of this technology may need more expandable facilities like data centres. Modern modular facilities play a vital role in supporting the development of data centres across Europe, delivering the highquality infrastructure required to keep these complex builds running smoothly. Flexible solutions can be used to support the build of data centres, from site accommodation and welfare facilities to luxury office spaces and canteens, all of which are built to exceptional specifications. With extensive experience working alongside major infrastructure projects, Portakabin helps enable the fast, efficient growth of large-scale developments where reliable, expertly delivered support structures are essential, both in the UK and across Europe. A network of robotics adoption hubs incoming In another section of the Advanced Manufacturing Sector Plan, it was announced that a new Robotics and Autonomous Systems (RAS) programme is being launched. Part of this development will see the establishment of a fresh network of physical Robotics Adoption Hubs. These hubs aim to give SMEs a helping hand when introducing robotic technology around a working environment, by providing them with the connections, equipment and expertise needed to get things set up with confidence. The National Robotarium, which is a global research institute based at Edinburgh’s Heriot-Watt University, has welcomed the creation of this network, with its CEO Stewart Miller saying in an official release that it marks “a pivotal moment in the UK’s journey towards robotics leadership”. “This new investment comes at a critical time,” Miller added. “The UK currently ranks just 24th globally for robots per manufacturing worker, with Germany alone installing eight times more robots than the entire UK in 2023. The global robotics market is projected to reach £218 billion by 2030, representing enormous opportunities for countries that position themselves as producers rather than consumers. “The new robotics adoption hubs will focus on accelerating technology uptake and supporting businesses in understanding and implementing robotics solutions.” How modular buildings can help all SMEs tap into the potential of advanced manufacturing now It may take time for SMEs to understand and implement the likes of AI infrastructure and robotic technology around their current work environments. However, modular buildings can supply the facilities which firms need, when they need them. These structures also provide businesses with the flexible, secure and scalable environments they need to meet those needs without delay. Simon Pollard, Manufacturing Director at Portakabin, explains: “Advanced manufacturing demands modern, adaptable environments. Fortunately, modular buildings allow businesses to create high-spec facilities up to 70% faster than traditional builds, without compromising durability or performance. “As the sector transforms, the ability to expand, reconfigure or relocate buildings easily helps manufacturers to stay agile and competitive. It’s a smarter, more sustainable way to build for the future.” All six manufacturing sub-sectors being prioritised in the Advanced Manufacturing Sector Plan can benefit from using modular buildings as temporary facilities too. This is because these structures address the need for high-quality additional space to be quickly created while renovations and expansions are taking place. With plans already being rolled out to make the UK the best place in the world to start, grow and invest in advanced manufacturing by 2035, SMEs should not delay in finding ways to improve their manufacturing practices and facilities to put them in the best possible position to reap the rewards of their forward-thinking approach.
British Made Awards 2026/ 12 Bullet-Proofing Your Finances: How Manufacturing SMEs Can Tackle Cash Flow Issues SMEs (Small-to-Medium-sized Enterprises) make up 99% of the firms in the UK and are the “lifeblood” of our economy. In 2023, the UK had over 250,000 manufacturing businesses which can be characterised as SMEs, highlighting the manufacturing sector as a key contributor to our economy. SMEs in all sectors have faced a number of challenges in recent years, from COVID-19 to rocketing inflation and plenty more. Now, however, cash flow issues are amongst the most common problems facing SMEs in the UK. With cost-of-living issues continuing to affect payment cycles, nearly half of small-to-medium-sized businesses list cash flow as the single largest issue they’re confronted with. For the manufacturing sector, where invoicing is common practice, this is a serious issue, increasing the risk of insolvency for SMEs that rely on timely invoice payment to survive. We caught up with invoice finance specialist Stuart Wilkie, Head of Commercial Finance at broker Anglo Scottish Asset Finance, to discuss some of the ways manufacturing SMEs can protect themselves against cash flow issues. Key findings • SMEs make up 99% of the firms in the UK. • There are 245,000-262,000 manufacturing SMEs in the UK as of 2025. • 48% of SMEs list cash flow issues as the biggest problem they currently face. • UK SMEs are owed an average of around £250,000 as a result of outstanding invoices. • The UK’s small businesses collectively waste over 56 million hours each year chasing late invoices. • Average times for construction businesses to be repaid dropped from 45 to 32 days between 2017 and 2023. • The government has extended the Recovery Loan Scheme, rebranded as the Growth Guarantee Scheme, which offers a 70% government guarantee on SME loans up to £2m in Great Britain. The current outlook for manufacturing businesses 48% of SMEs in the UK highlight cash flow issues as the biggest issue they’re currently facing, though this figure doesn’t quite reveal the extent of the problem. Research from 2023 indicated that SMEs in the UK are owed, on average, around £250,000 as a result of outstanding invoices – an amount that threatens to cripple SMEs. Manufacturing businesses may be more susceptible to cash flow issues than other sectors, particularly accounting for seasonal payment cycles, and high overhead costs. And, with the UK’s economy now officially in a recession, these issues could pose further problems without contingency measures in place. “Rather than traditional forms of finance like a standard commercial loan, manufacturing SMEs in this position are more likely to benefit from less rigid forms of finance, such as invoice finance,” comments Wilkie. “However, there are plenty of other ways that SMEs can insulate themselves against slow payments and cash flow issues…” Embrace automation Intuit Quickbooks estimate that the UK’s small businesses collectively waste over 56 million hours every year chasing late invoice payments. For the average manufacturing business owner, this means more than a week each year wasted – time that could be spent on more productive project-based matters. Investing in automated invoice processing could reduce the time wasted chasing these outstanding invoices, enabling your business to focus on the tasks that really matter. Reducing overheads Rising overheads are another key issue for manufacturing businesses, with fixed costs often posing a barrier to further investment. Though energy prices have begun to dip again in recent months, skyrocketing costs through 2022 and 2023 made fixed costs a serious barrier to business growth and even survival in many cases. It can be difficult for SMEs to get a handle on which areas of their business are costing them money – without end-to-end visibility over your operations, it can be a challenge identifying which fixed costs to tackle first. “Take the time to interrogate your overheads”, advises Wilkie – “Could you save money by switching energy providers? Can you cut down on freight or storage costs? This could help give your business a degree of flexibility once more.” Invoice finance Invoice finance is another valuable facility which is being accessed by a growing number of manufacturers looking to create more sustainable cash flow practices. By working with a third-party funder, manufacturing SMEs gain the opportunity to leverage unpaid invoices to instantly receive up to 90% of the invoice’s value. “From a forecasting perspective,” says Wilkie, “invoice finance makes life far easier. Rather than dealing with different customers or suppliers who pay invoices with varying degrees of urgency, invoice finance lets smaller businesses get a handle on the money they’re owed, without being hamstrung by other businesses dragging their feet.” Renegotiating terms For many manufacturing companies, previously agreed invoice repayment periods are hamstringing current business. Elongated repayment terms could be benefitting your partners and suppliers to the detriment of your business.
BuildUK, the UK’s leading representative for the construction industry, has noted an increase in the number of businesses that are benefitting from improved invoice repayment terms in recent years. In construction – one of the sectors most affected by invoice issues – this development is huge. Average times to repay invoices dropped from 45 to 32 days between 2017 and 2023, while the percentage of invoices paid within 60 days climbed from 82% to 94%. “Businesses in the manufacturing sector should try adopting similar practices,” says Wilkie. “Renegotiating your existing invoice practices in favour of shorter repayment terms could lead to a wide range of benefits.” Accessing support The recent release of the Spring Budget seems to offer further protection for SMEs, with Conservative politicians heralding 2024 as “The Year of the SME.” The Recovery Loan Scheme, intended to help SMEs get access to finance, has been extended and rebranded as the Growth Guarantee Scheme. The scheme offers a 70% government guarantee on SME loans up to £2m in Great Britain. The same guarantee is offered to SME loans up to £1m in Northern Ireland. While this could be a big help, Wilkie encourages manufacturers to research a range of funding sources if looking for external support. “You may be able to access more favourable lending terms from alternative lenders, so don’t feel bound to big banking institutions. You can typically trust any lender that’s FCA-approved, and you can double-check the FCA register to find out whether they are!” So, if your company operates in the manufacturing sector, there are plenty of different avenues available for you to explore to protect yourself from cash flow issues. Use the different options available to you and combine them to provide your business with maximum flexibility.
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