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swmas.co.uk | 01278 767 010 | [email protected]
COVID-19 Webinar: Information and Support for Manufacturing SMEsFriday 27th March 2020 | 11:00 – 12:30
Contents:• Introduction
• Top questions from SME’s
• What financial help is available
• Supply chain support options
• Risk management and business advice
• NHS supply chain demands
• Businesses showing growth/stability during this period
• Questions?
swmas.co.uk | 01278 767 010 | [email protected]
Introduction
• SWMAS – supporting SME manufacturers across South West of England since 2002
• Many companies asking questions around how to handle COVID-19
• Some great ideas coming through and equally a number of challenges
ObjectiveTo help share information and ideas across businesses in relation to how to deal with COVID-19
swmas.co.uk | 01278 767 010 | [email protected]
Common questions we have received• Can my business stay open?
o How do I determine if I am an essential worker?
o What do I need to do to mitigate the risks?
• How do I access the grants and loans that government are talking about?
• The grants the government are talking about don’t apply to me…
• My order book has been lost – can you help?
• We are inundated with demand – where can I find staff?
• What is furloughing of staff – who can help
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Coronavirus – context of the situation
swmas.co.uk | 01278 767 010 | [email protected]
Economic Performance
Time
RESPONSE PHASE RECOVERY PHASE THE NEW NORMAL
Public Health Crisis Economic Crisis Capitalising for growth in new paradigms
Initial areas of support requested from SMEs*
swmas.co.uk | 01278 767 010 | [email protected]
• Only 12% of manufacturing businesses who have responded indicate the current level of government support is enough for them to survive the crisis
• 86% of respondents wanted to know more information about what financial support is available for SME’s and how to access this support
• 27% of respondents would like help and support with their supply chain during this period
• 23% of businesses would like advice for risk management and strategic planning
*Data taken from current Manufacturing Barometer survey - (25th March 2020)
COVID-19 and Manufacturing Businesses
• Manufacturing and Construction businesses CAN stay open, but:
oVulnerable people must remain at home in isolation
o Those who can work from home MUST do so
o Social distancing applies whilst at work – 2 metre distance between workers
• Expect a list to be produced by government explaining which industries/sectors are permitted to stay open, and which ones must close - Current government list as of 26/03/2020
swmas.co.uk | 01278 767 010 | [email protected]
What is essential?
• This is a grey area at the moment and is being approached on a company by company basis
• MakeUK are pushing for clarity on whether the interpretation should be for the manufacture of essential items or manufacturing
• Evidence of social pressures are being placed on employees travelling to work
Issue employees with letters on company headed paper to explain why it is necessary to travel to work as many are being stopped by Police
swmas.co.uk | 01278 767 010 | [email protected]
Practical steps manufacturers are taking to achieve a safe working environment?• Communicate, communicate, communicate
• Safety first – if a worker is ill make sure they stay off or go home if they come on site
• Identify the essential workers within your business that have to be on site
• Split shifts – the working environments are often designed for maximum occupancy
• Add shifts with fewer numbers to try and keep up with demand
swmas.co.uk | 01278 767 010 | [email protected]
Financial Support• Deferring VAT payments – automatic holiday until June
• Business Interruption Loan Scheme
o Due diligence must still take place by the lender
o Full security guarantees are normally still required
o LINK to loan scheme criteria and information
• Small business grant funding
o One-off grant of £10,000, eligible if:
1. Your business is based in England AND
2. You are a small business and already receive SBRR and/or RRR AND
3. You are a business that occupies property
o No need to apply, your local authority will write to you
o LINK to small business grant funding information
swmas.co.uk | 01278 767 010 | [email protected]
Financial Support• Coronavirus job retention scheme
oProvides employers with the ability to keep employees on the pay roll at 80% of their monthly salary up to £2,500 per month funded by the government
oApplies to any employees that would otherwise have been made redundant
oNeeds to be agreed between the employer and employee
oGovernment portal for registering furloughed employees will be up and running soon
oPayments expected to start by the end of April 2020
**LINK to Government Business Financial Support page**
swmas.co.uk | 01278 767 010 | [email protected]
Poll: Accessing Government SupportPlease indicate which of these schemes your business is planning to access
Results:
swmas.co.uk | 01278 767 010 | [email protected]
41
6
4
A ) CORONA V IRUS JOB RETENTION SCHEME
B) CORONA V IRUS BUSINESS INTERRUPTION LOA NS
C) SMA LL BUS INESS GRA NT FUND ING
NO OF VOTES
SUPPLY CHAIN FACTORS
• Check with your customers and suppliers…what are their plans to get through the current crisis?
• Review which market sectors you operate in and the demand changes associated with this
• Factory shut downs within the supply chain are starting to result in parts shortages
• Price monitoring for key goods – UK task force being set up to monitor price hikes on pharma and food goods
swmas.co.uk | 01278 767 010 | [email protected]
swmas.co.uk | 01278 767 010 | [email protected]
SUPPLY CHAIN – KEY AREASStrategic Impact
✓Heavy burden on business leaders/senior management to balance the above issues
✓Deferring key business investment and medium to longer term strategy
✓Risk of long term loss of key resources and capabilities
✓Disruption and breakdown of customer relationships for suppliers because of different approaches through the crisis
✓Managing change of supply
swmas.co.uk | 01278 767 010 | [email protected]
SUPPLY CHAIN – KEY AREAS
People Resource
✓Under resource as a result of non-attendance by employees (travel and quarantine restrictions)
✓Associated costs with the above
✓Increasing in demand as a result of COVID-19 Virus (lack of skilled/general people resources availability)
✓Lack of transferability of resource due to travel restrict
swmas.co.uk | 01278 767 010 | [email protected]
SUPPLY CHAIN – KEY AREAS
Logistics Disruption
✓Restrictions on shipping to customer resulting in associated payment/cash flow (WIP & Finished Stock)
✓Inward delivery pipeline – supplies being disrupted by Import shortages (e.g. electronic components from China)
✓Increased demand and the ability to bring in new supply capacity quickly
✓Competition and priority addressing procured requirements to maintain existing or increased productivity
swmas.co.uk | 01278 767 010 | [email protected]
SUPPLY CHAIN Department for International Trade (DIT) can support businesses by:
✓providing assistance with customs authorities to ensure smooth clearance of their products
✓offering advice on intellectual property and other issues with business continuity
If you have an advisory or professional services firm that can help UK companies to find alternative suppliers, visit the following website for further information.
swmas.co.uk | 01278 767 010 | [email protected]
OPPORTUNITIES FOR SUPPLY
✓ Check public procurement websites
✓ Look into Openopps, a free resource that tries to pull together all open source tenders – www.openopps.com
swmas.co.uk | 01278 767 010 | [email protected]
HOW WE CAN HELP
If you are struggling to source supply at this time please let us know we have access to over 4000 companies across the South West of England and have helped companies:
1. Source challenging products
2. Aggregate purchase to be able to access components due to high demand i.e. Multi Layer Ceramic Capacitors
3. Support companies through the a structured source change process
Poll: Disruption to your supply chainWhat supply chain challenges are you currently seeing?
Results:
swmas.co.uk | 01278 767 010 | [email protected]
20
7
14
1
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0
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A ) CUSTOMERS SHUTTING DOWN
B) ORD ERS BEING CA NCELLED
C) SUPPLIERS SHUTTING D OWN
D ) NEW ENQUIRIES
E) PA YMENT D ELA YS FROM CUSTOMERS
F) PA YMENT T IMES SHORTENED FROM SUPPLIERS
G) PRICE INCREA SES FROM SUPPLIERS
H) PA YMENT UPFRONT FOR GOOD S
NO OF VOTES
Businesses showing growth/stability
During this tough period for most manufacturing sectors, there are some industries/sectors that are showing stability/growth that you may be able to get involved with:
• Anything in the NHS supply chain
• Food industry
• Packaging industry (food/medical/pharmaceutical)
• 3D Printing
swmas.co.uk | 01278 767 010 | [email protected]
swmas.co.uk | 01278 767 010 | [email protected]
TRANSFERRING SKILLS INTO OTHER SECTORS
✓ Distilleries – Hand Sanitisers
✓ Vacuums / F1 – Ventilators
✓ Testing and certification standards appear to be relaxed for certain items under these crisis situations
✓ Consider what capabilities you may be able to turn into other industries based on available demand
What products does the NHS Need?
The guidance from the World Health Organisation (WHO) regarding minimum PPE requirements specify the following items:
• Respirators / Face Masks
• Aprons
• Eye Protection
• Gloves
• Gowns
**Link to the WHO PPE recommendations document**
The NHS are also in need of
• Ventilatorsswmas.co.uk | 01278 767 010 | [email protected]
NHS Supply Chain
Respirators/Face MasksThese are used by NHS staff to help prevent them from inhaling Covid-19 vapours being spread via coughing/sneezing of the infected patients they are treating.
**These are disposable and in high demand**
swmas.co.uk | 01278 767 010 | [email protected]
FFP2 Face Mask
N95 Face Mask
FFP2 Mask RequirementsProtection from firm and fluid deleterious kinds of dust, smoke, and aerosolsParticles may be fibrogenic – which means they irritate the respiratory system in the short term and can result in reduction of elasticity of pulmonary tissue in the long runTotal leakage may amount to a maximum of 11%OEL transgression to the tenfold valueProtection class FFP2 respirator masks are made for working environments in which deleterious and mutagenic particles can be found in the breathing air. Respirator masks of this class must contain at least 94 % of the particles measuring up to 0.6 μm and may be used in environments transgressing the OEL up to a maximum of the tenfold concentration. The same goes for the TRK value (technical reference concentration). Protection class FFP2 respirator masks are often worn in the metal and mining industry. Workers in these industries are frequently in contact with aerosols, fog and smoke that result in conditions of the respiratory system such as lung cancer in the long term. On top, they harbor the massive risk of secondary diseases and active tuberculosis of the lung. Our uvex filter system with a layer of carbon protects wearers from unpleasant odors on top of the required breathing protection.
ApronsTechnical Specifications for reusable aprons:Reusable straight sleeveless protective apron, for use in healthcare settings.Straight apron with bib, back fastening and neckband.Back fastening band and neckband should be strong and not detachable.Moisture-proof and stain resistant.Material: Opaque or translucent high quality plastic material.Water and body fluids resistant, can be disinfected with chlorine solution (0.05% concentration).Size selected: Adult size.Length: 120cm (+/-5cm) from top of the bib to lower edge of the apron, total length: 145cm (+/-5cm).Width: 80cm (+/-10cm).Thickness: 150-300 microns.ReusableNon-sterile
swmas.co.uk | 01278 767 010 | [email protected]
Technical Specifications for Single use aprons:Single-use straight sleeveless protective apron, for use in healthcare settingsSeamless liquid proof and stain resistantComfortable to wear, apron has back- and neck-band strips attached (4 in total)Both back- and neck-band can be adjusted/fastenedColour: whiteMaterial: durable environmentally friendly plastic, polyethylene (PE)Size: 85 x 145 cm (w x l) (+/- 15%)Thickness, at not less than: 50 umCan resist water and disinfectant (ethanol 70% and chlorine solution 0.5%)Supplied as pack of 100 aprons
**Both specifications are from the UNICEF supply website https://supply.unicef.org/**
Eye ProtectionGoggles and face masks used in hospitals
LINK to 3D printable face masks
LINK to en166, en167 and en168 specifications
swmas.co.uk | 01278 767 010 | [email protected]
Medical GlovesLINK to medical glove specifications explanation EN 455
Medical GownsLINK to EN 13795 specification for medical gowns
VentilatorsVentilators are used for patients with severe symptoms of Covid-19
If you can manufacture all or part of a ventilator system, they are in urgent demand.
Follow this LINK to the government spec for ventilators.
Follow this LINK to register interest in producing parts for or complete ventilators at gov.uk
swmas.co.uk | 01278 767 010 | [email protected]
URGENT REQUEST FROM THE NHSRequired for their immediate needs:
• Alcohol and hand sanitiser gel - please download specification
• Respirators - please download specification
• Personal eye protection - please download specification
• Face masks - please download specification
• Surgical theatre gowns - please download specification
swmas.co.uk | 01278 767 010 | [email protected]
URGENT REQUEST FROM THE NHS
swmas.co.uk | 01278 767 010 | [email protected]
The following items have also been requested:
• Protective eye gear (individual units)• Fluid repellent surgical masks• Long sleeve plastic aprons• Disposable Gloves – sizes medium (M) and large (L)• Hand sanitiser (including 500ml pump or small 50ml/75ml alcohol
hand gels)• Plastic shoe covers• Disposable hygienic bags (boxes)
URGENT REQUEST FROM THE NHSShould you have any of these available or any alternatives that may also be useful in protecting front line staff, please can you contact John Welch by email to advise the products and quantities you are able to supply:
swmas.co.uk | 01278 767 010 | [email protected]
Webinar Q&A Session
swmas.co.uk | 01278 767 010 | [email protected]
Q: If you can't be sure to apply the 2m rule social distancing rule, and don't think you are "essential manufacturing" can you stay open if you take all other safety steps?A: To reduce social contact, the Government has ordered certain businesses and venues to close. More detailed information andexemptions can be found here.
Q: has there been clarification on the status of Directors for the job retention scheme (JRS)?A: Being a Director or Manager of a company does not disqualify you from the JRS. In addition, Directors or Managers will be able to continue undertaking their statutory duties while furloughed, such as filling out company accounts etc – more information canbe found here.
Q: If employees are self isolating are grants still available?A: The guidance is clear that those who are shielding in line with guidance from Public Health England can be furloughed. Those who are self-isolating or on sick leave get SSP but can be furloughed after that.
Q: Regarding Business Loans, although there is a choice of other banks in addition to your regular bank, is it easier to go through your current bank so you aren’t subjected to Proof of Identity requirements?
A: We recommend that you check this with your current provider. For a full list of providers please CLICK HERE.
Webinar Q&A Session
swmas.co.uk | 01278 767 010 | [email protected]
Q: We are still working. Some employees with no symptoms are seeking to stay at home as they do not want to take the risk of coming in. My understanding is that they would not be eligible for SSP…is this correct?A: The guidance makes clear that those who are shielding in line with guidance from Public Health England can be furloughed. Those who are self-isolating or on sick leave get SSP but can be furloughed after that. More detailed information and exemptionscan be found here, including the full list of the businesses and other venues that must close, and the businesses that can remain open, whose employees can travel to work if they cannot work from home.
Q: what's the advice for staff who live with a vulnerable group, but are unable to work from home?A: If a member of staff is concerned they have COVID-19 they should follow NHS advice. If they are advised to self-isolate at home they should follow the stay at home guidance. If advised to self-isolate at home, they should not visit and care for individuals until safe to do so.
Q: We manufacture poly cotton workwear and would be able to make anything for the NHS. Who could we contact for this?A: The government have set up a service for businesses to tell them how they may be able to help with the response to coronavirus – CLICK HERE TO REGISTER
Webinar Q&A Session
swmas.co.uk | 01278 767 010 | [email protected]
Q: In the event of redundancies being necessary, are the usual redundancy payments mitigated by any non work related paymentsmade in the interim?A: No information found on this, please refer to your legal professional for further details.
Q: Can we furlough people on a rota basis, week on week off? A: Click here for guidelines on who is eligible and how to manage this.
Q: We have the capacity to machine any precision parts that are required to help assemble the ventilators. We have registered with the BEIS, but are there any other networks we can register with to offer our services? A: Not at this time, we will advise if this changes in the future.
Q: Can you Furlough someone who has already self isolated due to underlying health conditions?A: Yes you can.
Q: If payments are made to support employees over and above that statutory requirement, can these be taken into account should redundancy be necessary?
A: No information found on this, please refer to your legal professional for further details.
Webinar Q&A Session
swmas.co.uk | 01278 767 010 | [email protected]
Q: Can we furlough an elderly high risk worker (Mid 70's) and replace them with an agency worker? A: We are not qualified to answer this – further legal advice can be found here.
Q: I know an apprentice who has been furloughed, but is expected to continue studying in the meantime. Would that be counted as training? A: If furloughed for less than 4 weeks: neither the employer nor the training provider needs to report the interruption, the end-date for the apprenticeship remains the same, and there is no change to the payment of funding.If furloughed for more than 4 weeks: employers and/or training providers must report a formal break in learning. Where a break in learning is reported, the payment of funding to the training provider will be suspended for the duration of the break in learning. CLICK HERE FOR INFORMATION IN FULL.
*PLEASE NOTE*We will continue to answer your questions to the best of our ability, but please ensure
that you visit the government’s COVID-19 Business Support Page regularly for the most up-to-date information.
Risk management and strategic adviceGeneral best practice to employers during these unprecedented times:
• Protecting your people
• Communication
• Contracts & Insurance
• Reduce your spending
• Grants & Funding
• SWMAS Support
swmas.co.uk | 01278 767 010 | [email protected]
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swmas.co.uk | 01278 767 010 | [email protected]
PROTECT YOUR PEOPLEThe health and wellbeing of your workforce is understandably a major concern at times like these.
Follow government guidelines to protect them and make sure you understand the most recent COVID-19 recommendations. Consider:
✓ Split shifts for staff
✓ 72 hour quarantine area for goods
✓ Minimise visitors£
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swmas.co.uk | 01278 767 010 | [email protected]
KEEP COMMUNICATINGMake sure that you keep communicating with your workforce throughout the uncertainty of the coming months by:
✓ Keeping staff informed of progress regularly
✓ Using daily video call/email update
✓ Remote working staff support
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swmas.co.uk | 01278 767 010 | [email protected]
CONTRACTS + INSURANCENow is the time to review all existing contracts and insurance policies:
✓ Do any of these cover notifiable diseases?
✓ Is there Business Interruption Insurance available?
✓ Details of Compensation for contracts (NEC3)
✓ Ask our team for further help
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swmas.co.uk | 01278 767 010 | [email protected]
REDUCE YOUR SPENDINGOur advisors are available (via remote tools) to help you understand and implement methods to assist in lowering company outgoings.
Amongst other things we can help by:
✓ Reviewing and adapting inventory levels
✓ Supporting with strategic planning
**CONTACT US TO FIND OUT MORE ABOUT HOW WE CAN HELP** £
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swmas.co.uk | 01278 767 010 | [email protected]
GRANTS + FUNDINGOn Friday 20th March, the government announced a temporary package of measures which will help to support businesses throughout the disruption caused by COVID-19.
These include:
✓ Coronavirus Job Retention Scheme
✓ Coronavirus Business Interruption Loan Scheme
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Poll: How did we do?Please provide feedback on this webinar:
swmas.co.uk | 01278 767 010 | [email protected]
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1 STA R
2 STA R
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NO OF RATINGS
The Manufacturing BarometerNow, more than ever, it's important that SME manufacturers get the chance to communicate what they need to help them mitigate the direct and indirect impact COVID-19 has on their business.
The Manufacturing Barometer gives you the chance to do just that, and, as the largest UK survey of SME manufacturers, the collective findings will be shared with a number of influential stakeholders to help shape future sector support!
swmas.co.uk | 01278 767 010 | [email protected]
swmas.co.uk | 01278 767 010 | [email protected]
**PLEASE GET IN TOUCH TO SEE HOW WE CAN HELP**
We recognise that, despite all the government measures in place, cash flow will be significantly impacted for many businesses over the coming months. We can help to source available grants and funding to help your business get through these difficult times…
✓ Does capital expenditure feature in your company’s business plan?
✓ Has your company recently invested in Research and Development (R&D)?
If you answered ‘yes’ to either of the above, you could be eligible for additional financial support!
