Brexit has raised costs for more than half of UK manufacturers
Brexit has increased costs for 51% of UK manufacturers, with 35% saying they have lost revenue and one in five that they have lost potential business due to Brexit, according to a new survey by the manufacturers’ organisation, Make UK. The study reveals that 74% of the companies quizzed have experienced delays since the UK ended its transition period for leaving the European Union on 1 January, with 28% experiencing hold-ups of 1–2 weeks because of goods stuck in transit and other delays.
According to Make UK – which represents 20,000 UK manufacturers of all sizes – many container ships are not stopping in the UK at present, due to delays at British ports. This is resulting in goods bound for the UK being offloaded in EU ports, impacting heavily on production schedules and lead times, with companies forced to make costly alternative arrangements to have their orders delivered.
Businesses are also reporting that rules for movement of goods are being interpreted locally within the EU and also at UK ports, adding to the problems.
“Government needs to move smooth out difficulties at UK ports so that shipments can be delivered easily,” says Make UK CEO, Stephen Phipson. “We are encouraged that Government is already working to train more high-quality customs officials and to give more assistance with customs paperwork, but this needs to be driven forward at speed to give the quickest possible assistance to British companies already struggling to get back to normal as trade recovers from the Covid pandemic.
“Government should look to quickly get back around the table with our EU partners to find a way to mitigate against ongoing delays at the border and iron out different interpretations of the rules for movement of goods in separate member states,” he adds.
Make UK says that the Government must also continue bring together a hauliers and logistics firms to work alongside Britain’s exporters and wider industry to find solutions to the issues currently plaguing the sector.
