Manufacturing growth group runs out of funds

Peterborough City Council and a company called Opportunity Peterborough set up the group

A cash-strapped council is being recommended to wind up a group supporting local manufacturing companies.

The Smart Manufacturing Alliance (SMA) was set up in 2021 to boost growth among manufacturers in Cambridgeshire and Peterborough.

It was initially awarded £715,000 from the mayoral authority but failed to build up enough commercial income to cover its costs.

Peterborough City Council's cabinet will decide on whether to approve dissolving the company in August.

'Significant pressure'

The SMA was set up by the city council and a council-owned company known as Opportunity Peterborough, which aims to promote business in the city.

It won funding from the Cambridgeshire and Peterborough Combined Authority but was intended to eventually generate its own income from other companies.

The SMA said since it was launched in October 2021, it had supported more than 140 businesses and given other forms of support, such as £129,000 in grant funding.

However, without getting any more public money, the company had to stop trading and had no staff delivering its services.

A spokesperson for Peterborough City Council said: "Unfortunately, for a number of reasons, including launching during Covid, and international energy and supply chain crises, the manufacturing sector has been under significant pressure since 2021.

"It had not been possible to generate the required income levels."

The council said it now only had enough funds to cover wind-up costs.

The SMA describes itself as a "network of like-minded manufacturers" that aims to "strengthen their competitive edge".

John Knight, managing director of EF Engineering in Peterborough, was part of the SMA network

John Knight, managing director of EF Engineering, based in Peterborough, said the network was very effective in its early days.

"Anything that promotes networking is always good," said Mr Knight, whose company specialises in making exhibition products.

"Some of the earlier introductions, we'd have meetings at a client's venue, walk around to look at the activities."

He said the SMA was impacted when members had to "focus inwardly", adding: "A lot of businesses like ours downsized and didn't always have time to commit to the organisation.

"Time becomes more valuable … it's very easy to say you're too busy for that."