When the new Brexit rules came into force in January 2021 many UK manufacturers warned it would add to the already soaring costs facing British industry. Concerns about customs delays and red tape were among the biggest fears. A year on, this blog looks at what the last 12 months have taught us.
As we look back, 12 months on from the end of the transition period, two-thirds of industrial company leaders in a survey of 228 firms said Brexit had moderately or significantly hindered their business. Over 50% of the surveyed firms warned they were likely to suffer additional damage this year from customs delays due to additional import checks and changes to product labeling.
The recent MakeUK/PwC senior executive survey records Brexit disruption as one of the most significant concerns facing industry bosses for 2022, as Britain’s departure from the EU further complicates the fallout from Covid-19 and the rising costs facing companies.
From customs delays to the added financial burden associated with meeting the new regulatory regimes in the UK and the EU, “It is clear from these figures that Brexit and the global Covid-19 pandemic have had a scarring effect on the mentality of many businesses, which are traumatised by the ongoing delays and disruptions to their supply chains,” the report said.
The report came on the back of media discussions about how Britain’s economy was losing steam at the end of last year as the Omicron Covid-19 variant negatively affected demand for goods and services.
Kaley Crossthwaite, a partner at accountants BDO, said: “Ongoing uncertainty around Omicron is providing a further blow to UK businesses which have already battled a string of supply chain issues, the threat of further Covid restrictions and inflationary pressures this past year.”
Despite concerns over the impact of Brexit and the Omicron variant, the team at Energy Technology and Control has faith that conditions in UK manufacturing will improve over the coming year. That optimism is coupled with documentation showing that more of the UK’s large companies were considering expansion into new products, services, or markets than at any time since it began in 2009.
The impact of Brexit on imports/exports and supply chains combined with Covid-19 and rising costs, has made for a challenging time, not just for UK manufacturing but for UK business as a whole.
Around 30% of companies in the survey were looking to reshore their supply chains to rely more on domestic sources following severe disruption to the delivery of international components and materials. We are proud that all of the burner control products we produce are made in the UK in our Lewes-based factory, using the latest electronic hardware and software technology. Our skilled team of engineers has more than 200 years combined experience in designing and manufacturing state-of-the-art burner technology and equipment from our UK base.
With over 3 decades of experience as a global leader of combustion controls and technology, Energy Technology and Control has vast experience operating worldwide and our team is highly experienced working with customs departments around the globe. The paperwork that the Brexit changes now mean is required for exporting to the EU is in line with the paperwork required for other international locations that we have exported to for years.
We have spent 30 years working with customers around the globe, we understand processes and procedures and continue to offer our customers a smooth and efficient customs experience. Brexit has shown us our strengths, it has shown us that we offer a safe pair of hands and we are excited for the opportunities 2022 brings. Contact us today.