The manufacturing industry is a vital part of the UK economy, accounting for almost 10% of GDP.1. However, this industry is under pressure, with increased competition from abroad and the need to reduce costs. Despite these challenges, the manufacturing sector continues to grow, with businesses looking for new ways to increase efficiency, and productivity, whilst reaching potential customers. One way that manufacturers can achieve this growth is by accessing funding available through grants. This blog post will explore how grants can help you diversify your business and what funding is available.
How can grants help you grow your manufacturing business?
1) Grants can help businesses to increase efficiency and productivity.
Several grants are available for your manufacturing company that can help your business growth and customer relationships. The Manufacturing Growth Programme (MGP), for example, is a grant scheme funded by the Department for Business, Energy and Industrial Strategy (BEIS) that provides financial support to small and medium-sized enterprises (SMEs) in the manufacturing sector. The grant can be used to fund a wide range of activities, including:
– Research and development (R&D)
– Product improvement
– Process innovation
– Marketing initiatives
The MGP is open to companies with an annual turnover of up to £50 million and offers grants of between £15,000 and £500,000.
2) Grants can help businesses to expand into new markets.
If you are looking to expand your business into new markets, many grants are available that can help. The Export Grant Scheme, for example, offers financial assistance to small and medium-sized businesses that want to export their products or services. The grant can be used to cover the costs of:
– Exporting goods and services
– Attending trade shows and exhibitions
– Developing marketing materials
– Training staff in export procedures
The Export Grant Scheme is open to companies with an annual turnover of up to £25 million and offers grants of up to £50,000.
3) Grants can help businesses to invest in new equipment and technology.
If your business is looking to invest in new equipment or technology, there are a number of grants available that can help. The Technology Strategy Board (TSB), for example, offers a range of grants for businesses that want to invest in innovation. The TSB provides two types of grants:
-Innovation grants are available to businesses that want to develop and implement a new product or process. Grants are available from £50,000 to £500,000 and must be matched by the business with funds from other sources.
-Implementation grants are available to businesses that have already developed a new product or process and need assistance with putting it into production.
4) Grants can help businesses to recruit new staff.
If you are looking to recruit new staff, there are a number of grants available that can help. The New Enterprise Allowance (NEA), for example, is a government-funded scheme that provides financial assistance and business advice to people who want to start their own businesses. The NEA offers two types of grants:
– Start-up grants: These grants are available to people who have recently started their own business. Grants are available from £500 to £2000 and must be matched by the business with funds from other sources.
– Growth grants: These grants are available for businesses that have been trading for more than 12 months and have plans to grow their workforce by at least 25%.
One of the most common grants for manufacturers is the R&D tax credit. This tax credit is designed to help businesses invest in innovation and growth. To be eligible for the R&D tax credit, your business must carry out qualifying R&D activities.
These activities can include developing new products or processes, improving existing products or processes, or testing new designs or materials. The R&D tax credit can provide up to 33% of your qualifying expenditure, making it an invaluable funding source for your business.
In conclusion, if you want to grow your manufacturing business, many grants are available that can help. Be sure to research the options and see which grants are most relevant to your business. With the proper funding in place, you can achieve great things for your business.