Businesses call for end to Brexit uncertainty

They say a "messy and disorderly" Brexit must be avoided to enable manufacturers to continue to deal with their European partners.

It comes as a new study suggests Britain's manufacturers are suffering a "nosedive" as a perfect storm of Brexit uncertainty, slowdown in major markets and trade wars takes its toll.

A survey of almost 300 firms by manufacturers organisation Make UK and business advisory firm BDO LLP indicated that a weaker currency is not helping, with export orders down despite prices falling.

The report said all the indications were that foreign customers are not buying British goods even though they are six per cent cheaper than this time last year.

Dan Turner, policy & representation officer at the Black Country Chamber of Commerce, said: "The Black Country is home to some of the world’s best manufacturers and a host of integrated supply chains. Alongside existing domestic challenges such as a recruitment and late payments, the message from Black Country Chamber members is clear; avoid a messy and disorderly Brexit.

“With 45 per cent of West Midlands exports heading to the EU and imports from the bloc as high as 63 per cent, anything that hinders our manufacturer’s ability to deal with European partners disastrous. The bottom line is that the uncertainty created by Brexit must end, as big investment and capital expenditure decisions are suffering."

Christopher Greenough, commercial director at Shrewsbury-based pressings specialist Salop Design, said: "There are indeed headwinds that make the current UK manufacturing climate a very challenging one to be in. The uncertainty on Brexit, the slow down in OEM car manufacture and the lack of a unified Government direction on industrial strategy means that most manufacturing businesses are having to make decisions now with little or no vision of future policy.

"In our business we do not fear a no-deal Brexit, we would prefer that than further protracting the negotiations. The uncertainty is what is affecting our business, as for many other businesses in the region and country.

Focus

"The downturn has meant that many are stalling on plans for investment, expansion and putting on hold further training provision. This will only exacerbate the skills gap when we come out of this downturn. Without key investment now, our country will again be behind the curve in terms of productivity and technology.

"What we need is this Prime Minister to finish the Brexit negotiations and take us out of Europe at the end of October. He can then focus on our country and supporting our manufacturers."

Seamus Nevin, chief economist at Make UK, said: "Industry is facing a perfect storm of factors, compounded by a hard Brexit which could not be coming at a worse possible time.

"In normal circumstances a global slowdown on its own would be enough, but add trade wars and the biggest shock to our economy since the war and there seems little doubt that, barring a remarkable turnaround, the sector may be heading for recession."

Despite the continued uncertainty over Brexit, some businesses in the region have been thriving and remain positive about their future.

Sophie Williams, finance director at Telford-based hot dip galvanizers, Corbetts the Galvanizers, said: "You can’t escape the fact that we live in uncertain times, with the Brexit debate never-ending and the China/US trade war threatening to suck the global economy into it.

"Despite this turmoil, the last 12 months have been very good for Corbetts the Galvanizers, with our investment in facilities and upskilling reaping dividends, with sales up 15 per cent across our core markets of agricultural trailers, cable management systems, security fencing and street lighting.

"The pipeline looks equally promising. Where we are having issues is with our workforce that traditionally has been made up of a lot of EU workers. These guys and girls are nervous about the current Brexit situation and some have returned home, giving us the challenge of continually recruiting for new positions."