COVID ID-19 Webinar: In Information and Support for Manufacturing - - PowerPoint PPT Presentation

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COVID ID-19 Webinar: In Information and Support for Manufacturing SMEs

Friday 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?

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In 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

Objective

To help share information and ideas across businesses in relation to how to deal with COVID-19

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Common questions we have received

• Can my business stay open?
• How do I determine if I am an essential worker?
• 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 f the sit ituation

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Economic Performance Time

RESPONSE PHASE RECOVERY PHASE THE NEW NORMAL Public Health Crisis Economic Crisis Capitalising for growth in new paradigms

In Init itial areas of f support requested fr from SMEs*

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• 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

*D *Data tak aken fr from

• m curr

current Man anufactu turin ing Bar arometer sur survey - (25 (25th

th Mar

arch 2020)

COVID-19 and Manufacturing Businesses

• Manufacturing and Construction businesses CAN stay open,

, but:

• Vulnerable people must remain at home in isolation
• Those who can work from home MUST do so
• Social distancing applies whilst at work – 2 metre distance between workers
• Exp

xpect a lis list to be produced by government explaining which in industries/sectors are permitted to stay open, , and which ones must clo close - Current government lis list as of f 26/03/2020

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What is 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

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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

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Fin inancial Support

• De

Deferrin ing VAT payments – au automatic holi

• liday until

til Jun June

• Busi

siness In Interruption Lo Loan Sc Scheme

• Due diligence must still take place by the lender
• Full security guarantees are normally still required
• LI

LINK to

• loa

loan sch cheme crit criteria ia and in information

• Sm

Small ll busi siness grant fu fundin ing

• One-off grant of £10,000, eligible if:

1. Your business is based in England AND AND 2. You are a small business and already receive SBRR and/or RRR AND AND 3. You are a business that occupies property

• No need to apply, your local authority will write to you
• LI

LINK to

• small busin

iness gr grant fu funding in information

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Fin inancial Support

• Coronavirus jo

job retention scheme

• Provides employers with the ability to keep employees on the pay roll at 80%
• f their monthly salary up to £2,500 per month funded by the government
• Applies to any employees that would otherwise have been made redundant
• Needs to be agreed between the employer and employee
• Government portal for registering furloughed employees will be up and

running soon

• Payments expected to start by the end of April 2020

**LINK to Government Business Financial Support page**

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Poll ll: Accessing Government Support

Please indicate which of these schemes your business is planning to access

Results:

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A) CORONAVIRUS JOB RETENTION SCHEME B) CORONAVIRUS BUSINESS INTERRUPTION LOANS C) SMALL BUSINESS GRANT FUNDING

NO OF VOTES

SUPPLY CHAIN FACT CTORS

• 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

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SUPPLY CHAIN – KEY AREAS

St Strategic ic Im 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

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SUPPLY CHAIN – KEY AREAS

People le Reso source ✓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

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SUPPLY CHAIN – KEY AREAS

Lo Logis istic ics Disr isruptio ion ✓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

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SUPPLY CHAIN

Department for r In Internatio ional l Trade (DIT IT) ) can support businesses by: ✓providing assistance with customs authorities to ensure smooth clearance

• f 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.

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OPPORTUNITIES FOR SUPPLY

✓ Check public procurement websites ✓ Look into Openopps, a free resource that tries to pull together all

• pen source tenders – www.openopps.com

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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 ll: Dis isru ruption to your supply chain

What supply chain challenges are you currently seeing?

Results:

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A) CUSTOMERS SHUTTING DOWN B) ORDERS BEING CANCELLED C) SUPPLIERS SHUTTING DOWN D) NEW ENQUIRIES E) PAYMENT DELAYS FROM CUSTOMERS F) PAYMENT TIMES SHORTENED FROM SUPPLIERS G) PRICE INCREASES FROM SUPPLIERS H) PAYMENT UPFRONT FOR GOODS

NO OF VOTES

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MARKETS OVERVIEW

Busin inesses 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:

• Anyt

ything in in th the NHS su supply ly ch chai ain

• Food in

industry ry

• Pac

ackaging in industry ry (f (food/medical/pharmaceutical)

• 3D

3D Prin rinting

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TRANSFERRING SKIL ILLS IN 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 th 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

• Ventilators

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NHS Supply Chain

Respirators/Face Masks

These 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 dis ispos

• sable and in

in high igh demand**

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FFP2 Face Mask N95 Face Mask

FFP2 Mask Requirements Protection from firm and fluid deleterious kinds of dust, smoke, and aerosols Particles 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 run Total leakage may amount to a maximum of 11% OEL transgression to the tenfold value Protection 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

• f the lung. Our uvex filter system with a layer of carbon protects wearers from unpleasant odors on top of the

required breathing protection.

Aprons

Technical 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. Reusable Non-sterile

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Technical Specifications for Single use aprons: Single-use straight sleeveless protective apron, for use in healthcare settings Seamless liquid proof and stain resistant Comfortable to wear, apron has back- and neck-band strips attached (4 in total) Both back- and neck-band can be adjusted/fastened Colour: white Material: durable environmentally friendly plastic, polyethylene (PE) Size: 85 x 145 cm (w x l) (+/- 15%) Thickness, at not less than: 50 um Can 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 Protection

Goggles and face masks used in hospitals

LINK to 3D printable face masks LINK to en166, en167 and en168 specifications

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Medical Glo loves

LINK to medical glove specifications explanation EN 455

Medical Gowns

LINK to EN 13795 specification for medical gowns

Ventilators

Ventilators are used for patients with severe symptoms of Covid- 19 If you can manufacture all or part

• f a ventilator system, they are in

urgent demand. Follow this LI LINK to the government spec for ventilators. Follow this LI LINK to register interest in producing parts for or complete ventilators at gov.uk

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URGENT REQUEST FROM THE NHS

Requir ired for r their ir im immedia iate needs:

• Alcohol and hand sanitiser gel - plea

lease downlo load sp specif ific icatio ion

• Respirators - plea

lease downlo load sp specif ific icatio ion

• Personal eye protection - plea

lease downlo load sp specif ific icatio ion

• Face masks - plea

lease downlo load sp specif ific icatio ion

• Surgical theatre gowns - ple

lease downlo load sp specif ific icatio ion

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URGENT REQUEST FROM THE NHS

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Th The foll llowin ing it items have al 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 NHS

Should 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:

John.welch@cabinetoffice.gov.uk

and

in info@crowncommercial.gov.uk

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Webinar Q&A Session

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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

• pen 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 and exemptions 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 can be 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

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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 exemptions can be found here, including the full list of the businesses and other venues that must close, and the businesses that can remain

• pen, 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

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Q: In the event of redundancies being necessary, are the usual redundancy payments mitigated by any non work related payments made 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

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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.

Ris isk management and strategic advice

General best practice to employers during these unprecedented times:

• Protectin

ing your peo eople le

• Communication
• Con
• ntracts & Ins

Insurance

• Reduce your sp

spendin ing

• Gr

Grants & Fu Fundin ing

• SWMAS Support

swmas.co.uk | 01278 767 010 | info@swmas.co.uk

£

1 2 3 4 5

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PROTECT YOUR PEOPLE

The 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:

✓ Sp Split lit sh shif ifts for r staff ✓ 72 hour r quarantin ine area for r goods ✓ Minim inimis ise visit visitors

£

1

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KEEP COMMUNICATING

Make sure that you keep communicating with your workforce throughout the uncertainty of the coming months by: ✓ Keeping staff in informed of f progress regularly ly ✓ Using daily vid ideo call/email l update ✓ Remote working staff support

£

2

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CONTRACTS + IN INSURANCE

Now is is th the ti time to review all ll exi xisting contracts and in insurance policies:

✓ Do any of these cover notifiable diseases? ✓ Is there Bu Busin iness In Interruptio ion In Insurance available? ✓ Details of Co Compensatio ion for contracts (NEC3) ✓ Ask our team for further help lp

£

3

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REDUCE YOUR SPENDING

Our 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:

✓ Revie viewin ing and adaptin ing in inventory ry le levels ls ✓ Su Supportin ing with ith str trategic ic pla lannin ing **CONTACT US TO FIND OUT MORE ABOUT HOW WE CAN HELP**

£

4

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GRANTS + FUNDING

On 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:

✓ Co Coronavir irus Jo Job Retentio ion Sc Scheme ✓ Co Coronavir irus Bu Busin iness In Interr rruptio ion Lo Loan Sc Scheme

£

5

Poll ll: How did id we do?

Please provide feedback on this webinar:

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1 STAR 2 STAR 3 STAR 4 STAR 5 STAR

NO OF RATINGS

The Manufacturing Barometer

Now, 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 Bar 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!

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**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!