BoE scheme may boost demand for control systems

When firms expand their operations or start new projects, they often need new drive systems and so on to help them achieve their goals. Because of the economic problems affecting the UK and many other countries, some businesses have been unable to access the funding they need to launch into ventures like this.

However, measures unveiled by the Bank of England (BoE) last month may help to address this problem for certain organisations, freeing them up to invest in control systems.

Governor of the Bank Sir Mervyn King announced the Funding for Lending initiative during a Mansion House speech. The move is intended to boost lending by banks to enterprises and individuals.

Under the terms of the scheme, banks can turn to the BoE to access lower cost loans and subsequently pass credit more easily on to their customers.

If this cycle works as it is supposed to, certain organisations might have more money to spend on new drive systems and so on to enhance or expand their operations.

Responding to the development, manufacturers’ organisation the EEF issued a cautious welcome. Its director of policy Steve Radley remarked: “EEF welcomes attempts to improve access to finance and the scale of these new announcements indicates how seriously the government and the Bank view the current situation.”

However, he added: “There are still big questions about what impact the scheme will have, whether the government is on the hook for the risk of this lending and how the additional lending will be monitored.”

Meanwhile, organisations that need to make use of new control systems now have plenty of choice available to them and by selecting their provider carefully, they should be able to achieve the results they are after while remaining within their budgets. Effective planning is a vital part of this.

For more information please visit – www.iconsys.co.uk

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