Why machinery is the investment opportunity that cannot be ignored
Dave Atkinson, UK Head of Manufacturing SME & Mid Corporates considers why now may be the time for investment.
Read time: 7 mins Added: 29/06/26
Right equipment, right time
The business case for investing in new machinery is well understood by Scottish manufacturers. The right equipment can support diversification, boost productivity, reduce operational costs, increase capacity and improve energy efficiency. Yet the sector has experienced a prolonged period of underinvestment.
This is understandable as weaker demand, higher costs and economic uncertainty have all contributed to firms pausing or scaling back their plans.
But CapEx investment can take a number of years to realise, so manufacturers need to look beyond short-term challenges and prioritise opportunities that can achieve clear long-term gains. Because those able to commit to new investment now will be well placed to remain competitive for years to come, both at home and abroad.
Minimising risk, optimising impact
The good news is that there is a wealth of support available to help manufacturing firms minimise risk and optimise the impact of their investments.
MTC (Manufacturing Technology Centre) can support throughout the procurement process, including developing a business case, writing a requirements specification and identifying the most appropriate suppliers.
It also works to help firms develop high-value manufacturing skills through apprenticeships and upskilling or reskilling employees, with a focus on advanced technologies like digital manufacturing.
Because investment in machinery can’t happen in isolation; firms also need a workforce that is equipped with the right skills if they are to harness the full potential of new technologies.
Enabling investment
When it comes to finance, Bank of Scotland has a portfolio of solutions designed to help maintain cash flow and spread the cost of any investment.
Asset Finance, for example, is a way to pay for machinery in monthly instalments, making budgeting more straightforward. It’s a flexible way to release cash from existing assets, unlocking their value to protect working capital and fund growth.
It’s a good option for manufacturers because it helps overcome the large upfront cost of investing in machinery and enables them to buy the right equipment, without compromise.
Investments can be supported through standard Asset Finance products like Hire Purchase via Lloyds, which provides a flexible and cash flow-friendly way to fund new machinery without paying in full upfront.
Capital Import Finance is also available via Lloyds to mitigate the risks of complex procurement and build processes. Whether the asset is sourced from overseas or within the UK, it provides finance for deposits and staged payments ahead of longer‑term Asset Finance solutions.
Sometimes, buying machinery from overseas can give a manufacturer a competitive edge, providing access to the best equipment the world has to offer. But it can also present extra risk, as international supply chains are more prone to disruption.
To help counter this risk, Lloyds’ Capital Import Finance covers the upfront cost and ensures funds are only released when the supplier meets their contractual obligations, giving confidence that the machinery will be delivered exactly as specified. And it also reduces exposure to foreign exchange volatility, locking in costs at the point of order, which is particularly useful for high value machinery with long lead times.
Finally, where investments are designed to support manufacturers’ low carbon transition, Bank of Scotland Green Asset Finance works to support investment in equipment and vehicles that help firms achieve their sustainability goals.
It provides discounted lending against assets that reduce the environmental impact of the business. That means machinery that's energy efficient or supports the production of sustainable products or circular economy adapted products and technologies.
Because becoming a low-carbon business isn’t only good for the environment, it can make Scottish manufacturers more competitive through efficiency savings, lower energy costs, access to new markets, increased employee engagement and enhanced brand reputation.
A transformative impact
These products are already enabling Scottish manufacturers to modernise, expand and compete.
Like Fyne Ales, the state-of-the-art independent brewery founded by Jonny and Tuggy Delap on their sixth-generation family farm in Argyll.
Their investments have helped turn a small rural outfit into one of Scotland’s most respected independent breweries, known for its award-winning craft beers and the hugely popular FyneFest, which draws thousands to the area every summer.
Their strategy included boosting capacity by upgrading the original 1,600-litre manual brew kit with a 6,500-litre bespoke system installed in a converted sheep shed, helping triple turnover.
And a £100,000 centrifuge, funded by a grant from Zero Waste Scotland and Asset Finance from Bank of Scotland, reduces the time it takes for beer to clarify and mature, delivering a higher output from the same footprint.
Together, these investments have expanded the brewery’s output from 14,000 to 100,000 litres a week.
While 80% of sales are through pubs, which will remain a core growth channel for the business, Fyne Ales is now looking to capitalise on new opportunities in supermarkets, English pubs and export markets.
It all goes to show how a joined-up approach of investing in machinery and people is paying dividends for Scottish firms. Because for Scotland to secure its deserved place in modern sustainable supply chains, the time has come to act, innovate and invest.
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Asset Finance facilities are provided by Lloyds Bank plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278. The provision of credit or leasing services by Lloyds Bank plc is subject to you meeting their Credit approval. Please ensure that you only apply for credit or leasing services that you can comfortably afford.
Lloyds Bank Asset Finance, part of Lloyds Banking Group, is a member of the Finance & Leasing Association (FLA) and complies with the FLA Business Code of Practice. Further information is available from the FLA at www.fla.org.uk.