Made Smarter Match Funding: A Practical Guide for Manufacturers

For manufacturers across England, the Made Smarter match funding grant is one of the most valuable opportunities currently available to help fund digital technology projects.

 We’ve been working closely with Made Smarter advisors and regional growth hubs, including Digital Transformation Advisor Les Selby at HEY Business Growth Hub, to better understand exactly how the grant works — what qualifies, what doesn’t and how manufacturers can successfully access funding. 

Here’s what manufacturers need to know.

What Is the Made Smarter Match Grant?

In short, Made Smarter is a government-backed programme supporting UK manufacturers with digital adoption.

How Much Funding Can Manufacturers Receive?

• Up to 50% match funding
• Typically capped at £10,000–£20,000 depending on the grant type

 The grant provides: 

• Funding for defined digital transformation projects
• Access to wider support including training, networking and roadmap planning

Important: This is reimbursement-based funding — businesses must pay for the project upfront and then reclaim the agreed grant amount.

Who Is Eligible?

You must be a manufacturer. Eligibility is based on actual activity, not just your SIC code.

To qualify, your business must:

• Add value to raw materials through a manufacturing or production process
• Physically produce, process, fabricate or assemble goods

Examples include engineering firms, fabrication businesses, food producers, processing businesses (e.g. fish smoking operations), assembly and subcontract manufacturers

Pure retailers, distributors or service-only businesses do not qualify unless they can evidence genuine manufacturing activity.

SIC Code Eligibility

While eligibility is based on real manufacturing activity, Standard Industrial Classification (SIC) codes are often used as an initial screening tool.

SIC codes are the five-digit industry classification codes assigned by Companies House that describe a business’s main economic activity. They are declared when a company is incorporated and can be updated via Companies House filings.

For Made Smarter, most eligible businesses fall within Section C of the UK SIC system (codes 10–33), which covers manufacturing industries such as:

• Food and drink manufacturing
• Metal fabrication and engineering
• Electronics and machinery production
• Chemical and plastics manufacturing
• Furniture and textiles production

However, SIC codes do not determine eligibility on their own.

Many manufacturers are incorrectly classified as:

• Engineering services
• Installation businesses
• Technical services

Because of this, Made Smarter advisers will normally assess what your business actually does, including:

• Production processes
• Equipment used in manufacturing
• Whether goods are physically produced or transformed

If your SIC code does not sit within the manufacturing section but your business clearly manufactures products, you may still qualify after assessment.

SME Requirements

Your business must qualify as a Small or Medium-Sized Enterprise (SME).

Typically this means:

• Fewer than 250 employees
• Annual turnover under £45–46 million
• Not majority-owned by a large corporate group

Ownership structure matters. Even if your UK entity is small, being owned by a large multinational or corporate parent may affect eligibility.

Location Requirements

Funding is delivered regionally.

Eligibility is based on where the manufacturing activity takes place, not where your accountant, registered office, or head office is located.

Businesses must ultimately register directly with the programme, as suppliers cannot submit applications on their behalf.

However, many manufacturers start by speaking with a technology partner such as ourselves, who understands the programme and can help determine whether a project is likely to qualify before beginning the process.

This can help avoid common issues such as:

• Submitting projects that fall outside the eligibility criteria
• Structuring projects in a way that unintentionally triggers procurement rules
• Missing regional funding windows or deadlines

Working with an experienced partner early can make the process significantly smoother.

Regions Covered by the Made Smarter Adoption Programme

The Made Smarter Adoption programme is now delivered across multiple English regions, with each area running its own local delivery model and funding cycles.

Regions currently covered include:

• North West
• North East
• Yorkshire and the Humber
• West Midlands
• East Midlands
• West of England
• London
• South East

Each region has its own delivery partner, typically a growth hub, combined authority, or regional innovation organisation responsible for administering the programme locally.

Although the overall objectives of Made Smarter are consistent across England — helping manufacturers adopt digital technologies and improve productivity — the exact delivery model can vary slightly between regions.

For example, some regions may prioritise:

• Digital adoption grants for new manufacturing technologies
• Specialist technical advice and digital roadmapping
• Leadership and management training
• Digital internships or skills support
  
  

Regional Delivery Differences

Each region manages its own funding timetable and budget allocation, which means availability and application timelines may vary.

For example:

• Some regions operate April–April funding years
• Others run fixed application windows or cohort-based funding rounds

Businesses apply through the national Made Smarter platform, after which they are routed to the relevant regional delivery team based on where their manufacturing activity takes place.

What Can the Funding Be Used For? 

The key phrase Made Smarter use is: “Adoption of digital manufacturing technology.”

Eligible technologies typically include:

• ERP systems (they must form part of a clearly defined project scope, which The HBP Group can of course help with)
• Data systems and integration
• Cybersecurity
• AI and automation
• IoT (Internet of Things)
• Robotics
• Digital twins
• AR/VR
• Big data and analytics
  
  

What Is NOT Eligible? 

• Ongoing managed service contracts

• Subscription-only arrangements without defined deliverables

• General operational spend

• Non-digital purchases

• Projects exceeding public procurement thresholds (around £25k+) without formal tendering
  

If a project approaches £25,000+, public procurement rules may apply, which significantly complicates the process.

How Much Funding Is Available?

Typically:

• 50% match funding (e.g., £20,000 project → £10,000 grant)
• Intensive Technology Grants are usually capped at £20k total project value
• Larger CAPEX-style grants may go higher but involve more complex applications
  
  

How the Funding Actually Works 

1. The business must register itself

Suppliers cannot apply on their behalf.

2. Project is approved This can take several weeks

Sometimes longer for larger projects.

3. Business pays in full

The client must:

• Pay the supplier upfront
• Obtain invoice
• Provide proof of payment
• Sometimes provide evidence (e.g. installation photos)

4. Claim submitted

Claims are processed on a month-end local authority payment run. This is not instant payment — businesses must be prepared for cash flow impact.

How Long Do You Have to Complete the Project? 

Normally around 3 months from approval.

Extensions may be possible if issues arise — provided the project does not run into the end-of-year funding cut-off (March/April in Yorkshire).

What Happens If Costs Change? 

• Cost reductions → usually fine
• Minor scope adjustments → usually manageable
• Cost increases → must be privately funded
• Projects creeping toward £25k+ → may trigger procurement complications

The safest approach is tight scoping and careful project structuring.

Can You Access Funding More Than Once?

Potentially, yes but it depends on the programme region and the project. It's not guaranteed.

If structured correctly, projects can sometimes be phased:

• Phase 1: £20k project (eligible)
• Phase 2: £20k project later in the year (separately eligible)

Each phase must stand on its own merit.

FAQ with Les Selby from Made Smarter

To better understand how the programme works in practice, our Business Development Manager Jack Nicklas recently sat down with Les Selby, from HEY Business Growth Hub, who supports businesses looking to utilise the grant. 

Jack: What’s the biggest misunderstanding businesses have about the grant?

Les:
“They often think it’s automatic funding. It isn’t. The business has to register, engage and drive it. Suppliers can support, but the engagement must come from the company itself.”

Jack: Can ERP projects qualify?

Les:
“Absolutely. ERP, data integration, digital systems — that’s exactly the type of adoption we’re looking for. The key is structuring it correctly. Large ERP projects often need to be phased.”

Jack: What are some of the typical challenges for SMEs in relation to the grant?

Les:
“Cash flow and timing. It’s reimbursement-based. If a business isn’t prepared to pay upfront and claim back, then that presents a significant challenge. And regional deadlines matter.”

Jack: What’s the first step?

Les:
“Registration. If they register, it gets the process started. From there we can support them properly.”

We are currently working with Les Selby in the East Yorkshire region to help manufacturers better understand and access this support.

Why This Matters for Manufacturers

Digital transformation projects are often delayed because:

• “It’s too expensive right now.”
• “We’ll do it next year.”
• “We’ll wait until budgets free up.”

The Made Smarter match grant can remove up to 50% of the cost barrier if structured correctly.

That’s where planning, scoping and timing become critical and your partner can make a big difference in helping to get this over the line.

Thinking About Applying?

If you're a manufacturer considering:

• ERP implementation
• Cybersecurity upgrades
• Automation
• Data integration
• Digital process improvements

The Made Smarter grant can be a valuable way to offset some of that investment — if the project is structured correctly and submitted at the right time within your region's funding cycle.

We regularly support manufacturers with:

• Scoping projects that align with Made Smarter criteria
• Structuring digital transformation projects in eligible phases
• Navigating procurement thresholds and funding rules
• Coordinating with regional Made Smarter advisors

If you're exploring ERP, cybersecurity, automation or other digital investments and want to understand whether the project could qualify for funding, our team can help you assess the opportunity before you begin the application process.