THE LASER USERTHE LASER USER JOB SHOP CORNER: CHAIR’S MESSAGE A BUDGET FOR GROWTH?


After hearing the latest budget, my first question is: why has a government focused on growth added to the costs facing SMEs? With another significant rise in the minimum wage, an increase in employer National Insurance (NI) contributions, and a lower threshold for paying those contributions, SMEs are now dealing with a serious impact on employment and investment plans.


In sectors like ours, where margins are already tight, we’re now forced to find ways to either absorb these extra costs or pass them on. In my view, this added financial burden risks hindering growth instead of promoting it. That said, SMEs are resilient, and I’m confident we’ll find ways to manage these new pressures.


On the topic of new challenges, last week our largest customer asked for the carbon content of a part we manufacture. This requirement is tied to the EU’s Carbon Border Adjustment Mechanism (CBAM), which I quickly looked up. In short, CBAM places a cost on the greenhouse gases emitted during the production of certain imports,


including iron, steel, and aluminium. Designed to level the playing field for EU and non-EU producers, CBAM was enacted in October 2023, but its financial implications kick in from January 2026.


While we’ve been working on calculating our carbon footprint as part of our sustainability goals, pinpointing the carbon content for each part adds a whole new level of complexity — and cost. However, this demand is not going away; in fact, more customers are beginning to ask for our carbon footprint and sustainability plans. Companies that can provide these details gain a competitive edge by showing their commitment to sustainability, a growing priority for many clients. So, despite the hurdles, there’s a clear benefit for SMEs who can adapt and align with these emerging expectations.


Chris Waters


chriswaters@micrometric.co.uk https://micrometric.co.uk/


ISSUE 114 AUTUMN 2024ISSUE 114 AUTUMN 2024 JOB SHOP CORNER


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