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The pandemic and Brexit together represent a shock of unprecedented proportions that have transformed the economy and changed priorities. I’ve begun to run out of superlatives to describe the scale of the upheaval we have all experienced in the last year. Manufacturing and construction have certainly fared better than some parts of the economy like retail and hospitality, but we are beginning to see the shoots of recovery everywhere. Now is the time to take a hard look at your supply chain and to create value. In my long experience, most companies underestimate this opportunity by as much as 50%. And the value can be delivered in as little as 90 days!  Our new research featured in UK Manufacturing Barometer clearly demonstrates some of the issues you need to face into.

The team at Insider Pro have researched 1,500 UK manufacturers and found a worrying pre Brexit, pre-Covid picture. Although in the last 5 years UK manufacturers grew sales by 21%, they failed to grow profits.

In the same time frame;

• Collection of debts improved by 3 days
• They failed to secure longer credit terms from suppliers
• Stock bloated from 55 days to 61!

As the effects of Brexit wash through, and companies try to reboot volumes in 2021, there is trouble on the horizon. Profits are set to halve and cash is under pressure like never before! But there is also good news. The winners in the next 18/24 months will be those who win the battle for cash. With strong cash controls, companies can build a war chest which will help them win market share and invest where their competitors can't. Supported by a robust, agile supply chain, the winners may well take it all. The stage is set for disruption and change.

As we edge towards re-igniting the economy, CFOs of large, medium and small enterprises, need to focus on the basics.  The old mantra "Cash is king" has never been more important if companies are to recover and take advantage of the new normal.