Growing UK automotive businesses are missing out on revenues worth £25 billion because they lack access to finance that would unlock potential growth, according to new research.
Analysis carried out by Wyelands Bank found that 96% of mid-sized automotive manufacturers with a turnover of £10 million to £300 million said they were held back due to a lack of finance.
Each of the 305 automotive firms included in the study claimed that the difficulties raising finance meant each company missed out on an average of £24.8 million in revenues, and an average of 24 new contracts, which would have created 21 new jobs.
The study goes on to suggest that the 1,605 mid-sized businesses across the automotive manufacturing supply chain in the UK have collectively missed out on 24,284 contracts, which would have created 11,802 jobs, and some £25 billion in revenues.
Eight out of 10 automotive firms said they are prevented from investing in new equipment and technology because of difficulties raising finance, while 63% have been held back from entering new markets.
Iain Hunter (pictured), CEO of Wyelands Bank, said: “Our research shows that UK mid-sized automotive manufacturers are not able to grow to their full potential without greater access to finance. But that finance has not been available as traditional banks are too often unable to help. Helping mid-sized automotive businesses unlock growth would help tackle the UK economy’s productivity challenges.”
He added that mid-market companies can have a disproportionate impact on growth and job creation.