We are proud to have partnered with Make UK, the manufacturers' organisation, to conduct research into the concerns of manufacturers for a no-deal Brexit, and to produce this report calling on the UK government to secure a trade agreement that supports the manufacturing industry.
The report highlights the significance of the manufacturing industry for the UK economy – contributing almost £275 billion annually in EU exports. Manufactured goods make up close to half of UK exports, of which half leave for countries across the EU and only 18% to countries further afield, thus demonstrating the importance of a suitable trade deal with the EU.
Our research shows that 76% of manufacturers believe a no-deal Brexit would be disastrous to their business. Already, almost half of manufacturers have experienced a noticeably negative change in EU customer supplier/buyer appetite over the last two years, and 64% report a negative impact on their profit margins during this time. Furthermore, 60% of manufacturers report the need to increase prices and a third would have to cut staff in a no-deal scenario.
Make UK has long campaigned for a Brexit deal that works for UK manufacturers, setting out the four key outcomes that manufacturers need from Brexit negotiations, including frictionless trade, access to skills, mutually recognised close regulatory alignment and a planned open-ended implementation period. Our report explores these outcomes in further detail, advising manufacturers on what to expect post-Brexit and how they can prepare.
Providing both practical and legal advice, the aim of this report is twofold: to encourage and support manufacturers in preparing for the post-Brexit era, deal or no-deal, as well as encouraging the UK government to secure a deal in order to ensure a transition to a future relationship with the EU that works for UK manufacturing
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
