With May stepping down, many are urging her successor to find an urgent solution that will protect the future of our engineering and manufacturing market. Make UK’s CEO has urged for more clarity on Britain’s future trading environment as the slow process is increasing the risk and making an already worrying situation for many even worse.
A recent survey has revealed that one in three UK engineering and manufacturing organisations are suspending headcount and 32% are decreasing equipment purchases. Another UK group issued a profit warning for 2019, announcing an 18.4% fall. Furthermore a massive 48% of UK businesses are concerned they are not adequately funded to handle the challenges that a UK exit will create. Other companies are fearing shortages and have put preparations in place to stock-pile and ensure they have the produce required to continue business.
Small and medium sized enterprises (SME’s) are also feeling the heat and around two thirds feel that the uncertainty of the future and Brexit, have impacted their business significantly more so than it has on larger organisations. Financial factors have many small and medium manufacturers fearing they will not be able to compete with larger competitors who will have more capacity to invest with changes Brexit may create.
UK car production has seen vast upheaval with 44.5% fewer cars built in the same month last year, a result many feel boils down to Brexit.
The uncertainty of Brexit has evidently had an effect on many areas within the engineering market making a need for a favourable deal ever more so present and urgent.