New EURIS report: Securing a competitive UK manufacturing industry post Brexit
Key findings in the report include:
EU Regulation enables industry to remain competitive in a global market. 83% of survey respondents support continued regulatory alignment with the EU. Product regulation has a critical role in ensuring that a high standard of safe and compliant goods are placed on the EU market. There is no benefit in moving away from the EU regulatory system for industrial and manufactured products.
Imports account for over half of total costs for 44% of companies. Any increase in barriers to trade will have significant impact on the UK’s global competitiveness. Our competitive advantage in non-EU markets depends on the UK having barrier free-trade for intermediary products and components with the EU. Notably, 52% of EURIS survey respondents stated that over half their sales were intermediate inputs for other companies.
The longer the uncertainty over the Brexit process continues, the more long-lasting damage will be incurred by our businesses. EU 27-member states have been warned to ‘prepare for the worst’ and review their supply chains. For most companies changing suppliers is a significant decision,
and one very rarely reversed and some EU27 companies have already started to select non-UK suppliers. One third of EURIS survey respondents are already thinking about or have already changed suppliers due to Brexit - sales have already been lost.
It is not a choice of exporting to Europe or the rest of the world. If we become less competitive in the EU we will be less competitive in other international markets. The UK Government’s target to develop stronger trading relationships with other non-EU countries is a positive move, but this can only be achieved if we maintain a strong alignment with EU regulations and supply chains.
Other key conclusions from the survey include:
Four in ten companies say they will face a skills shortage without EU workers.
15% of firms believe even a two hour delay at customs would impose additional costs on their business
Just 4% of respondents had no concerns about any element of Brexit impacting their business.
Approximately 1/3 of respondents have already seen a fall in investment due to Brexit with only 2% reporting an increase.