By Christopher Rugullies, SVP, Commercial Market Manager at Camden National Bank

The manufacturing sector plays a significant role in the Northern New England economy. In Maine, where October was recently proclaimed Manufacturing Month by Gov. Janet Mills, the state is home to approximately 1,880 manufacturers contributing almost $7 billion to the economy. This represents 11% of the state’s GDP, making it the third-largest economic sector in Maine. In New Hampshire, 1,700+ manufacturers contribute more than $10 billion to the economy, representing 12% of the state’s GDP, making it the second-largest economic sector. And with the push to increase America’s manufacturing ability and capacity, these numbers will likely increase over time.

By working closely with wood product manufacturers, shellfish companies, and food processors harnessing the region’s abundant natural resources; precision metal product manufacturers building components for the military and aerospace industries; and marine, boat builders, and textile manufacturers—which are heritage industries in Maine—Camden National Bank has developed a deep understanding of the unique needs and challenges facing today’s manufacturers. These challenges include staffing, employee retention, housing, high energy costs and taxation, global competition and supply chain demands, evolving technology, and data security.

Banking, and how a manufacturer interacts with their bank, should not be one of those challenges. A manufacturer needs a supportive banking partner that offers a comprehensive suite of services tailored to the industry, delivered by an experienced team.

Working Capital Financing

Manufacturers typically have long cash conversion cycles that demand significant working capital. A partner bank will take the time to carefully understand their working capital needs, the anticipated timing of cash flows, and the nature of the assets that can be supported by a line of credit. The bank will then carefully structure the line of credit to maximize credit availability while balancing risk. Depending on the financial strength of the borrower, the size of the line of credit, and the underlying assets being financed, the structure and monitoring may range from lines of credit with a simple annual clearance requirement to lines of credit with availability based on a monthly borrowing base formula supported by inventory and accounts receivable.

Equipment Financing

Manufacturing is capital-intensive. The cost to acquire new equipment to support growth, create efficiencies through automation, and replace aging/depreciated assets can be significant. Banks typically provide financing for new and used equipment with a loan term and amortization schedule that corresponds with the expected life of the equipment.

Real Estate Financing

A partner bank will support the infrastructure financing needs specific to manufacturers—property acquisitions, sale-leaseback transactions associated with investors, the construction of new facilities or the expansion of existing ones—while also partnering closely with the U.S. Small Business Administration and their 504 loan program, which accommodates up to 90% financing for non-investment properties.

Treasury Management

Managing a manufacturer’s cash conversion cycle is critical, and treasury solutions improve this cycle and help optimize the cost of capital. Manufacturers can pay and collect funds electronically using remote deposit capture or facilitate the import and export of goods and services with international wires, foreign exchange, and trade finance. With treasury management services, business accounts—particularly active operating accounts—can be carefully monitored with automated account alerts and protected from fraud using check and Automated Clearing House (ACH) positive pay.

To learn more about how Camden National Bank is the supportive banking partner you are looking for, please visit us at