Insider Media Limited

Despite widespread announcements of a return to profit from the banks, little benefit is being felt by the region’s manufacturing sector. That's according to Simon Griffiths, head of the Manufacturing Advisory Service-West Midlands (MAS-WM).

Griffiths said that businesses are still facing major difficulties in accessing finance.

He said: “While it is very good to hear the banking industry is slowly finding its feet, we are still receiving regular feedback from companies that are being hampered in their efforts to grow by a direct lack of lending.

“Given that just about every indicator out there shows us emerging from the downturn this just seems plain nonsense, but this is what we are hearing loud and clear.”

He said that although accessing finance from the banks was a challenge, there was a great deal more that could be done on both sides to encourage lending and investment.

“I have visited numerous manufacturers in our region and those making strides forward are those that know exactly where they want to go and have put time into the three Ps – products, processes and people.

“It’s here really where I think banks and businesses could be more joined up. If the money is there to be loaned, the business case is right and there is confidence in management, then it should be a win-win for both parties."

Griffiths also suggested that the re-introduction of local business bank managers could be “of real benefit”.

He said: “In the days of a local manager, he or she had such good working relationships with their customers and could spot a winner when one came along.”