UK Manufacturing Industry 2023

Payment Culture in the UK Manufacturing Sector

In 2023, small businesses in the UK Manufacturing sector continue to face significant challenges related to slow or late payments. These issues can have serious consequences for businesses, making it difficult to manage cash flow, pay suppliers and employees, and invest in growth.

One of the most significant challenges faced by small businesses in the UK Manufacturing sector is the impact on cash flow. Late payments can cause significant cash flow problems, making it difficult to pay bills and suppliers on time, and can lead to missed opportunities for growth. This can also lead to difficulty in obtaining financing, as lenders may be hesitant to work with businesses with unstable cash flows.

Furthermore, small businesses in the sector may struggle to compete with larger businesses that have greater resources and can afford to offer longer payment terms. This can lead to a situation where small businesses are forced to accept unfavourable payment terms, further exacerbating their cash flow problems.

In Manufacturing payment culture, looking at least year versus this year, we can see a similar difference in payment behaviour that we see in other sectors. Seven out of ten of last worse (slowest) payers last year have remained the same or are paying even more slowly. The same number, seven out of ten of the best (fastest) payers last year remained the same or are paying faster this year. The figure for Church & Co looks so slow it is possibly a mistake in their reporting. Good Business Pays contacted them to check but received no reply.

In conclusion, slow or late payments pose significant challenges for small businesses in the UK Manufacturing sector in 2023. These issues can impact cash flow, relationships with suppliers and employees, and competitiveness. While government measures have been introduced to address the issue, more needs to be done to ensure timely payments and support small businesses in the UK Manufacturing sector.

Average days to pay Feb 22Average days to pay Feb 23
CHURCH & CO LTD84380
RECKITT BENCKISER (UK) LTD123126
GRAPHIC PACKAGING INTERNATIONAL LTD6984
ADARE INTERNATIONAL LTD8282
COMMUNISIS UK LTD7276
JOHN COTTON GROUP LTD7569
DS SMITH CORRUGATED PACKAGING LTD6970
SEDA UK LTD6269
IG DESIGN GROUP UK LTD6462
NICE-PAK INTERNATIONAL LTD5855
SOFIDEL UK LTD2731
G. MODIANO LTD3531
KRONOSPAN LTD3030
SCOTTISH LEATHER GROUP OPERATIONS LTD2930
METSA WOOD UK LTD3325
CAMIRA FABRICS LTD2624
MILLIKEN INDUSTRIALS LTD2722
ST. CLEMENTS PRESS (1988) LTD2121
MOONPIG.COM LTD2221
CANTERBURY OF NEW ZEALAND LTD2020

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