The world is changing, now more than ever. For manufacturers with supply chains to consider and Brexit looming, there are some major concerns about the future. In this post we aim to address some these concerns and help business owners to understand the best way to protect themselves moving forward, whatever happens.
There is a lot of emotion around Brexit and very diverse opinion. This is not a space for debate but instead, we want to simply look at the facts, recognise the greatest concerns that business owners have right now and address them.
The need to stockpile
A hot topic in the media with regards to medicine and food, many businesses have actually begun to stockpile resources too, a quarter of those surveyed by Make UK already have a stockpile in place and another quarter are planning to. Manufacturing business are mostly concerned that access to raw materials will either dry up with a no deal Brexit or become more expensive.
Stockpiling might seem like the answer, but there are consequences to buying more than you need and over 50% of those doing it are struggling financially as a result. Those who are doing this, or considering it, should question how necessary it is and if it’s possible to source materials elsewhere. This can be overwhelming and feel like a minefield which is why it is advantageous to talk to experts in this field who are also based in the UK, those who understand the current market and options available.
Companies who already outsource manufacturing abroad have recognised an increase in costs, any potential Brexit deal/no deal now is predicted to push this up further with additional costs incurred for importing and exporting.
Adjusting a supply chain is costly in itself. 19% of the businesses who have done this in the last two years have brought manufacturing back to Britain but many more have made amendments and kept them still in Europe. These companies may have to make changes again depending on the result of Brexit.
As the future unfolds, it looks more likely that more companies will have to seriously consider moving manufacturing back to Britain. Although there are cost implications to any big change within an established process and supply chain, there are advantages to manufacturing in the UK. These advantages were there before the referendum and will continue to be there after Brexit. They include the high reputation of Britain’s manufacturing industry, a skilled workforce, zero language / cultural barrier and the ability to stay more in control and informed throughout the process. These factors can actually save money, potentially offsetting any cost of relocation back to Britain.
As eyes focus on what is possible for the UK manufacturing, there is a continued and increasing need for more traceability in UK manufacturing. For safety reasons, the aerospace industry set high standards in this area and a highly competitive, complex global market has embraced it. The UK’s manufacturing industry has been inconsistent with traceability and this is a potential concern for some.
There are, however, experts in laser marking here in the UK, a process that is quick, legible and can be performed on very small objects or parts. Laser marking can be done on a wide range of materials including steel, plastic, wood and foam. It is an effective process that allows for full traceability of components and parts and is available right here in the UK right now.
Working with the experts
As our future in the EU and global economy feels full of uncertainty, there is a level of anxiety amongst British businesses who rely on Europe for either raw materials or manufacturing.
The best way to alleviate anxiety is to take action. Don’t wait for the future to happen to your business, just hoping for the best. Take action today. Inform yourself and with new knowledge, make choices that support stable, profitable growth.
Working with a third-party manufacturing expert here in the UK allows your business to thrive in an uncertain world. Work with a manufacturing company that is connected and has access to the people and materials that your business need. Manufacturing in the UK doesn’t have to be an isolating, overwhelming experience. Far from it, the process can be smooth, controlled and of the highest quality.
Here at Nexus IE we can be your experts, your manufacturing hub, your support system and your means to growth through challenging political times.
To visit our factory where we could manufacture your products, parts or components, or talk to one of our business managers, obligation free, call us today.