The uncertainty surrounding the UK's move away from the EU has already had major impacts on manufacturers, suppliers and retailers. A survey conducted in November 2017 by CIPS revealed that 63% of the EU companies participating in trade with the UK intend to move some of their supply chains elsewhere as the UK exits the single market and the customs union. Government officials, as well as UK businesses, are working tirelessly to ensure contracts continue to be established and extended beyond the Brexit transition.
Manufacturing growth in the UK has slowed down significantly due to fears surrounding trade shifts when the Brexit process is completed. Negotiations surrounding the Brexit terms continue to proceed at the pace necessary for the government to secure the best deal, and companies are working hard to ensure investment in UK operations remains attractive. Economic growth in the second quarter of 2017 was predictably slower, but reports suggest momentum is starting to pick up again.
Executives in logistics and supply chain operations are vocalising their concerns regarding changes to tariffs and quotas as they work to try and maintain the current flow of trade. For example, if manufacturing is to remain strong then the imports of raw materials from Asia need to remain duty and tariff free, which is a benefit of being in the customs union. Without such trade advantages, costs could escalate meaning both import and export costs for the UK could become higher and less attractive for overseas traders. And, of course, the issue of Ireland - a major hub of manufacturing for the UK - continues to be a cause for concern. Every spokesperson for the industries involved, including logistics, is taking every measure to advise the government's Brexit negotiators of the importance of putting deals in place to protect against these threats. The government is receptive to these words, and confidence is high that some agreement will be reached that benefits everyone.
Parcelbroker is taking great care to adapt to any changes that Brexit may bring. Through the uncertainty over the remaining period of Brexit negotiations, we will conduct ongoing assessments of impacts in different areas, and make the appropriate plans and adjustments. Our customers can feel they are in good hands, as we endeavour to ensure shipping and logistics run in the same positive and effective manner they have always known. And as we are able to, we will make all the assurance we can about the future trade being able to continue enabling our great industry to prosper.