Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Brexit causing supply problems for small UK manufacturers: survey

Published 15/02/2021, 00:09
Updated 15/02/2021, 08:40
© Reuters. FILE PHOTO: Border control at the Port of Dover

© Reuters. FILE PHOTO: Border control at the Port of Dover

LONDON (Reuters) - New post-Brexit trade restrictions have pushed up the cost of parts and raw materials for two thirds of small British manufacturers surveyed last month, and a majority reported some level of disruption.

The survey of nearly 300 firms, by consultants South West Manufacturing Advisory Service (SWMAS) and the Manufacturing Growth Programme, a government and European Union-funded initiative providing support to small firms, adds to the picture of disruption from new customs checks that came into force on Jan. 1 for goods trade with the EU.

"Price hikes in the supply chain have been immediate, and we are hearing tales of lead times being extended on raw materials," said Nick Golding, managing director of SWMAS.

Some 65% of manufacturers reported higher costs, and 54% said they had greater difficulties exporting goods to the EU.

Around a fifth of manufacturers thought they might gain from customers bringing work back to Britain from the EU.

Britain's government has said many of the difficulties are "teething troubles" and last week said it would make 20 million pounds ($27.7 million) available to help small firms get used to the new rules. Further restrictions are due to take effect later this year.

Earlier this month the Bank of England forecast that Brexit-related trade disruption would reduce economic output by 1% during the current quarter - equivalent to about 5 billion pounds - and it expects trade to fall by 10% in the long term.

Brexit supporters say Britain will gain long-term advantages by setting its own trade rules with countries outside Europe, as well as from greater control over domestic regulation.

© Reuters. FILE PHOTO: Border control at the Port of Dover

($1 = 0.7216 pounds)

Latest comments

Really? What did they expect? Why so surprised? Don't need a degree in economics or finance like me to figure it out. It's all a tax dodge by the seriously rich not to have to disclose their offshore wealth, painted to the masses as "taking control and stopping immigration " Muppets who fell for it will be the ones worse off unfortunately.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.