The manufacturing industry has hugely benefited from the R&D tax credits scheme (introduced by the Government in 2000). This has been shown in 2020’s HMRC report on industry sector analysis claims where it clarifies that almost 1 in 4 claims (24%) have been utilized by firms within this market.
As a result of the scheme, the manufacturing industry has witnessed significant growth and evolution due to the incentive which was introduced to help companies (of all sizes) to take risks and try to advance their processes.
With more risks being taken, the expectation is for there to be a breakthrough in new revolutionary pieces of technology that can help enhance a company’s performance and production efficiency while maybe even having wider-spread benefits to the community/environment. This is just one of many benefits and features that R&D can help create for the manufacturing industry, there are lots of diverse areas of innovation (maybe too many to list here), however, the most integral ones to the industry include:
- Supply Chain
- Advanced Materials
- Production Processes
R&D within these specific aspects of manufacturing is aiding the rise of smart and digitized distribution networks within the logistics and supply chain of a company. With this part of the business being so rigid, improvements in technology can help adopt a more flexible approach to the processes and improve delivery times of the products and services that could even surpass customer satisfaction levels (something this specific part of the industry lacks).
An example of a company that has adopted an efficient and digitized system within its supply chain is Amazon. They use QR codes to scan and track their products within the warehouses to ensure nothing gets lost. This is a more extreme example of a multinational company, however, these forms of streamlined innovation can be utilized with SMEs undergoing the same processes.
Businesses that conduct R&D within the manufacturing industry have an opportunity to gain a lot through innovation due to the range of benefits they have. The following are just 5 (of many other) benefits that R&D can have on businesses in the manufacturing industry:
- Improved Security.
- Improved efficiency with production leading to less wastage created.
- Less environmental damage.
- Less reliance on manual operations – leading to fewer errors caused.
- Higher quality of products.
If your business has been conducting R&D within the manufacturing industry, you are then likely to be eligible for R&D Tax Credits. Regardless of what stage you are in, even in some cases, some business’ R&D fails, there is still potential eligibility there for you to claim back tax credits on the tasks you have (at least) attempted.
Here at Green Jellyfish, we work with all companies from every sector to ensure they have claimed back tax credits on their R&D hard work.