£2.2m fund launched to help Welsh manufacturers boost productivity and sales

Daniel Bevan - Editor

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Small and medium-sized manufacturers across Wales are set to benefit from £2.2m of new investment aimed at modernising operations, increasing productivity and driving sales growth.

The funding, delivered through the Tech Valleys Business Productivity Enhancement Programme, will support engineering and manufacturing firms to adopt advanced technologies, digitise processes and develop new products.

Over the next three years, eligible businesses will be offered a free diagnostic to assess performance and growth potential.

Companies that meet the criteria can then apply for capital grants ranging from £10,000 to £50,000.

Successful applicants will also receive tailored support covering skills development and export advice.

The programme has previously demonstrated measurable impact. Between 2020 and 2023, 83% of participating firms reported increased productivity.

Collectively, supported businesses generated an additional £1.6m in sales, while also raising wages, upskilling staff and safeguarding jobs.

Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning, said: “This £2.2 million investment shows our commitment to strengthening Wales’s manufacturing sector.

“By helping SMEs adopt new technologies and digitise their processes, we are helping to protect jobs and create opportunities for growth across Welsh communities.

“I am confident this funding will help even more Welsh manufacturers thrive and compete in an increasingly digital marketplace.”

Among the early recipients this year is Blackwood-based JR Gilbert Engineering.

The company has used the funding to purchase advanced computer-controlled machinery to expand its capabilities and improve efficiency.

Director James Beavis said: “Using the funding, we purchased a large CNC machine – a Doosan DNM 750 which has enabled us to undertake complex 3D machining of large 1.5T mould tooling, supporting local companies requiring refurbishment work.

“We have also invested in advanced software and staff training to program intricate toolpaths, while integrated probing allows us to generate detailed accuracy reports.

“This investment has strengthened local supply chain resilience and provided additional capacity as our customer grows.”

Family-owned Cottam and Brookes Engineering in Caerphilly has also secured support, investing in a digital 3D portable measuring arm to improve precision and reduce production times.

The company said: “The BPEP funding has improved production by streamlining services and increasing operational efficiency.

“This advanced equipment has enhanced accuracy, reducing errors and waste while improving overall quality.

“The introduction of laser scanning technology option has expanded capabilities, enabling detailed design work and creating opportunities for higher-value, design led projects that strengthen long term business growth.”

Joshua Miles, Head of FSB Wales, said: “This funding is a positive step in supporting Welsh manufacturers to boost productivity, embrace digital tools and compete more effectively.

“Small firms in engineering and manufacturing often face barriers to accessing capital for equipment, training and innovation.

“Free diagnostics combined with grants of £10,000 to £50,000 and tailored advice on skills and exports can make a meaningful difference, helping them build resilience.

“We encourage eligible SMEs to take advantage of this opportunity and urge Welsh Government to continue prioritising accessible, outcomes-focused support that directly benefits smaller businesses across Wales.”