GUEST COLUMN:
Samantha Noble,
Area Director South Wales,
Lloyds.
The UK Government recently pledged £250 million to support the country’s largest semiconductor facility in Newport.
An important advancement, not just for the EV sector and wider clean energy drive, but also for South Wales’ business community.
The investment – part of the Government’s Automotive Transformation Fund – is expected to turbo charge the manufacturing of advanced Silicon Carbide semiconductors, an integral part of EVs. At the same time, it’s projected to bring more than 500 highly skilled jobs to the Newport area, and ripple further outwards to support hundreds more in the wider supply chain.
The funding is a step forward for South Wales, with many local firms already looking to capitalise on a more positive outlook and increased confidence – helpful side effects of the announcement.
Building strong foundations
Despite business confidence falling in April according to our monthly Business Barometer, one thing that has remained consistent for Welsh SMEs this year has been their continued ambitions to pursue growth – a mark of resilience. When asked to identify their top areas for growth over the next six months, investment in their team, particularly through training and upskilling, has been the top priority for three out of the four months so far in 2025.
Challenges persist, but the green shoots of expansion are still making their way through.
Accessing finance
At Lloyds, we have a range of support available to help firms secure the finance needed to act on their ambitions.
One example of a firm we recently supported is Bridgend-based crane hire firm R.W. Christopher, which used funding from Lloyds to boost its ability to diversify into the green energy market as the transition to a more sustainable future continues at pace.
Using a £1.7 million funding package from Lloyds, R.W. Christopher invested in a brand-new 250-tonne crane. Gaining momentum in its growth journey, the business also purchased a plot of land to develop its new HQ, and also drew up plans to boost its headcount and focus on upskilling its people.
By keeping their finger on the pulse of sector and regional trends, leveraging Lloyds’ support, and taking the leap during a period of bolstered confidence, R.W. Christopher is a shining example of how businesses can approach the opportunities that come up when a new supply chain comes to the fore – a step that regional businesses should assess as new investment floods in around Newport’s semiconductor facility.
Cash flow management
For businesses looking to evolve in this way, a healthy cash flow is essential to ensure finances are fighting fit and ready for growth. Firms that manage cash and working capital well tend to be more profitable in the long run, better able to cope with economic cycles and have greater resilience against short-term shocks.
To safeguard cash flow, local businesses should map out potential risks, put in place robust contingency plans, and explore options to streamline their operations if appropriate.
And if firms are after more sizable or long-term cashflow requirements, invoice finance and asset-based lending can be valuable solutions to help manage growing demand and free up capital to target new opportunities. These lending solutions work by accessing finance that is locked up in invoices or assets, giving businesses additional capital to use for operations.
Green growth
As more businesses embrace the green transition, there’s a growing need for practical tools and financial support that can help them align with their sustainability goals. In response, we’ve been working to expand our resources to better support firms making the switch. Among these is the Clean Growth Funding Initiative, which provides discounted lending to help businesses implement sustainable measures. We’ve also developed a Green Buildings Tool to help firms assess and understand the carbon footprint of their premises and operations.
As sustainability becomes an increasingly central part of a small business’ growth strategy, access to funding and tools that reflect their evolving capabilities and priorities is more essential than ever.
Supporting SMEs
We understand that it remains a challenging time for Welsh businesses, but we also know that the region’s firms are resilient and focused on growth.
Through increasing investment in projects that we’re seeing on the ground like the Newport semiconductor facility, I have every confidence that Wales’ business ecosystem will continue to succeed and prosper.
