SMEs worried about material costs

Wales SMEs are facing a mixture of fear about business and consumer spending, but at the same time they are attempting to deal with the high cost of materials according to a new report published by GE Capital.

The report is composed of interviews that were held with 500 UK SME owners during the month of March and found that 40% of all Welch companies listed inventory costs and the high raw materials costs as one of their chief concerns in terms of their future success.

In fact, the worry over the rising costs was almost as high as the fear of how much UK spending will be focused on business and consumer spending which was identified as a worry by 42% of SMEs.

Regional director of GE Capital, Paul Emeades, stated that as the country is on the cusp of an economic turnaround the Government is going to have to match the budget to support the Wales SMEs if it does not want to halt their recovery.

Emeades continued to say that Wales SMEs should not be left behind because with over 52,000 firms worried that their numbers will decrease this year the Government needs to take note and focus on keeping conditions right to foster growth.

He also stated that in order to aid the SME’s the Government should consider reducing the cost of the new regulation, reduce the potential impact of high fuel costs which continue to rise, and rethink the proposal to increase the fuel duty later in 2010.