Mechatronic Production Systems Limited, based at Kings Norton Business Centre, has secured export deals in the face of upheaval in the UK economy after receiving £200,000 in UKSE funding.

Despite many customers in their domestic markets pausing long term investment due to international tariffs, Mechatronic has employed new staff and is targeting growth, all through focussing on the opportunities overseas.

Mechatronic supplies factory production and robotic process automation to some of the world’s leading automotive, industrial, medical device and aerospace companies.

Mechatronic offers customers full turnkey and automated solutions from concept to installation through to training and service support, with products including Robopod, a modular and portable ”plug and play” robotic solution which can be linked to form a flexible production line or operated in isolation to automate a process.

The company approached social impact funder UKSE, which works with companies across the West Midlands unable to secure investment from mainstream banks, in 2024 for backing to fund growth.

Managing Director Tony Parker-Watkins said the business needed to adjust the delivery of its plans in the face of national and global economic challenges.

Tony said: “There is no doubt a lot of manufacturers have put the brakes on spending on capital investment, which impacts us, as they absorbed the costs of increased National Insurance payments and other changes such as the export tariffs but things picked up for us from the spring onwards.

“We reapplied our focus outside of the UK and have picked up significant projects for customers in the EU and Asia. We are committed to serving customers in the UK but we have been able to make the most of these opportunities further afield.

“We have recruited two new people and the business is on target and structured to achieve growth. Our focus is now on building our overseas new business pipeline as there is plenty to fight for.

“The funding from UKSE has enabled us to capitalise on these opportunities. We are looking to recruit, subject to the work in the pipeline being secured.”

Mechatronic has built strong links with UKSE. The lender’s board of directors visited the automation specialist in the summer to see their investment in action.

Tony said: “The feedback the directors gave was very positive as they were pleased to see innovation in action with our work in industrial automation. We have a monthly call with the local UKSE team, who have been supportive since we borrowed the funds.”

Providing strategic loan and equity packages of up to £1m to generate growth and create jobs, UKSE’s team based in Keys Business Village, Cannock, supports SMEs across Birmingham, the Black Country, Coventry, Staffordshire and Telford.

Celebrating its 50th anniversary, UKSE supports the economy with unsecured loans up to £200,000, often without the need for personal guarantees, as well as equity investments.

The lender has operated nationally since 1975. UKSE Midlands Area Manager Steve Grice and Regional Executive Mike Lowe deliver investment in the West Midlands.

Steve Grice said: “We are pleased to have seen Mechatronic make strides forward despite the challenging economic environment. Even though the going has not been favourable, Tony and his team are taking a global view to unlock new opportunities which benefit not just their business but the wider West Midlands economy.

“By working with specialist, highly skilled businesses like Mechatronic, UKSE can deliver on its mission of enabling businesses and the people behind them to create jobs, grow and prosper.”

UKSE was introduced to Mechatronic by Andy Moss of Ricosta Capital. Andy said: “It has been great to see Mechatronic use the support to deliver further success in the West Midlands. Their progress since they received their funding is an example of a well-run business making the most of the opportunities ahead of them.”

UKSE is a wholly owned subsidiary of Tata Steel UK Limited with a mission to enable and encourage businesses and the people behind them to create jobs, grow and prosper, within communities affected by current or historic changes in the steel industry and its jobs.

UKSE provides investment in scenarios including the purchase of new equipment, business acquisitions, expansions and management buyouts.

Since 1975, UKSE has invested more than £115m, helping 8,000 businesses and stimulating the creation of 83,000 new jobs.

The UKSE support for Mechatronic came after the firm secured a further £350,000 of Midlands Engine Investment Fund II funds through manager Frontier Development Capital (FDC).

• To find out more about UKSE, visit www.ukse.co.uk.