BANKS and funders have been urged to help the county’s manufacturers out of recession.

According to the leader of an industry support body, “cash will be king” for companies looking to make the most of the first signs of economic recovery.

Simon Griffiths, chief executive of the Manufacturing Advisory Service West Midlands, is urging banks and other lenders to help the sector bounce back from the downturn by increasing access to finance and, importantly, at reasonable rates.

The chartered mechanical engineer believes companies in the area are being hamstrung by a lack of refinancing options and unfair lending conditions, which are disrupting day-to-day operations, the purchasing of raw materials, supplier payments and, in some instances, firms looking to expand and create jobs.

“Recent surveys predict an upturn in manufacturing over the next six months and while we should all welcome this news, we have to be mindful of history telling us that a lot of firms fall victim of the growth that follows a recession,” said Mr Griffiths, who spent more than 25 years with Land Rover and GKN.

“That is why it is so important that banks and other lending institutions treat manufacturers fairly and ensure they have the same access to finance and loans as other sectors so they can continue to trade, win new business and move a sector that employs 330,000 people locally back into positive territory.

“We have lots of anecdotal information about credit insurers refusing to guarantee new orders and funding only being offered at unreasonable rates.

“I feel this is beginning to change in recent months and can only be helped by the Government’s desire to force banks to lend to SMEs.

“We’re not asking for favours or hand-outs, just a level playing field so that our well-run and often world-class businesses have the best possible chance to lead the area out of recession.”