How the Northern Powerhouse Investment Fund II is shifting gear for advanced manufacturing

Investment as a catalyst for change

Across the North, manufacturing businesses with deep roots are rising to the challenges of a rapidly changing industry. Many have been family-run for generations, passing knowledge and expertise down through the years. Most importantly, they do not bemoan the pressures of the modern era but instead embrace it to find ways to integrate new technologies to continue delivering high-quality products. The Northern Powerhouse Investment Fund II is helping these companies to innovate and adapt by providing access to finance that can sometimes be hard to secure through conventional routes. For these businesses, investment is far more than a safety net. Rather, it provides them with the capital they need to invest in research and development and purchase new, cutting edge machinery that allows them to compete on a global stage.

Building stability through collaboration

Durham-based SST Group is one example of this. Formed through the coming together of two established engineering businesses, it secured a £1.625m investment from NPIF II – Maven Equity Finance. The funding is currently supporting the group’s plans to grow organically and make better use of the combined expertise within the business. The group specialises in precision engineering and manufacturing solutions for a range of industrial clients and its leadership sees the merger as a way to create stability and open up opportunities that would have been harder to reach alone.

Strengthening the supply chain

Further along the supply chain, Middlesbrough’s Valves and Flows is responding to growing demand from sectors such as construction and civil engineering. The business secured a five-figure loan from NPIF II – NEL Smaller Loans and the finance is being used to increase stock levels so that it can shorten lead times and deliver on larger orders. It has also enabled the recruitment of a new sales engineer to help the firm build its presence across the North East. Access to working capital is allowing the business to scale without losing its agility.

Innovation with commercial impact

Innovation in manufacturing is not confined to heavy industry. In Liverpool, Atomik-AM is helping to change how components are made for sectors including energy and aerospace. The business, founded by Kate Black, secured £600k from NPIF II – Praetura Equity Finance. The investment is supporting a planned expansion of its local team and the search for larger premises. Developing patented products such as its Universal Binder, used in 3D metal printing to help manufacturers produce key parts at scale, it is also creating materials that reduce the use of resources in production, which is becoming an increasingly important factor for global supply chains. Access to this kind of investment allows companies like Atomik-AM to turn ambitious ideas into tangible solutions, scaling innovation that would be difficult to achieve without external support.

Looking ahead

The North has an industrial base with deep roots, but legacy alone will not secure its future. Manufacturers are being pushed to cut emissions and modernise long-standing processes, and many are also working to protect their supply chains against disruption. None of that can happen without access to capital and the scope to plan beyond the short term. This not only safeguards these businesses, but sets them up for long-term success, improving processes and nurturing the next generation of talent. NPIF II is at the forefront of this change and is helping businesses modernise their operations to plan for long-term growth.

Northern Powerhouse Investment Fund II was set up to ensure that smaller businesses are not locked out of that transition. By supporting manufacturers at different stages of growth, the Fund is helping create the conditions for long term competitiveness in a sector that underpins much of the wider economy.