The Manufacturing Agenda
What prompts lender intervention? Lenders and investors reported a different emphasis. When we asked them what would prompt intervention in a manufacturing business within their portfolio, cost, cashflow and working capital pressure was top of their list (44%) – factors that can often be symptoms of longer-term underlying issues. They also identified a series of early warning indicators that frequently signal emerging stress. High staff turnover or absenteeism was the most referenced behavioural indicator (36%), with ESG or regulatory compliance concerns (32%) and negative shifts in customer or supplier feedback (i.e. a deterioration in the manufacturer’s key client relationships) (31%) also being monitored. Declining order volumes/pipeline activity (29%) and margin erosion or rising input costs (25%) rounded out the top signals that lenders and investors use to assess risk in real time.
44% 36%
Said cost, cashflow and working-capital pressure was top of their list when asked what would prompt intervention.
High staff turnover or absenteeism was the most referenced behavioural indicator.
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