Page 46 - EngineerIT AugustSeptember Issue 2026

FINANCE

Smart manufacturing needs

smart finance

By Justin Render

South African manufacturers know they need to modernise. The harder part is
finding the capital to move when opportunity arrives.

t this year’s Manufacturing Indaba, Manufacturing growth commonly
automation and digitisation were demands capital before it produces
Aeverywhere. For Koreshini Pillay, Senior revenue. A business can secure an
Product Manager at Lula Business Funding, the order, only to discover that fulfilling it
more urgent issue is behind the surface. requires additional machinery, upgraded
equipment or greater production capacity.
“The technology gap is a financial gap.” By the time the revenue arrives, the
opportunity may already have passed.
Pillay highlights that, while manufacturers
may know exactly which machine, sensor or Pillay says finance should complement
production upgrade they need, the investment the way a factory actually operates.
often has to happen before the return does. “Funders should believe in a business’s
rhythm and meet the business where it is
“You can get an order tomorrow, but you in the cycle.” That means looking beyond
need the factory upgrade to be done a single historical snapshot or application
yesterday,” Pillay says. That timing process. Two manufacturers in the same
problem framed Pillay’s argument in sector may have completely different
her discussion, Smart manufacturing order cycles, equipment requirements,
Koreshini Pillay needs smart finance. margins and growth plans.

46 | EngineerIT August/September 2026