March 2019

NEWS n 3 “I am saddened by the way that some of our politicians have put selfish political ideology ahead of the national interest and people’s livelihoods and left us facing the catastrophic prospect of leaving the EU next month with no deal,” she added. According to the YouGov survey, the most common form of Brexit preparation among UK manufacturers is stockpiling, with 23% of companies reporting that they done this (doubling to 46% among large businesses). Of those who have begun stockpiling, more than half (56%) have experienced some difficulty in financing the inventory. Other preparatory measures include creating contingency funds (reported by 17% of firms), currency hedging (16%), adjusting supply chains (16%) and raising prices (14%). So far, just 8% have cut jobs. Of those that have adjusted their supply chains, 35% have offshored, with the EU being the most popular destination. But 26% have brought production back to the UK, with most of this coming from the EU. More than half (51%) report that adjusting their supply chain has raised their costs, with 10% saying that is saving them money. The executives were also quizzed on what changes they would like to see to encourage manufacturing in the UK. More than half (53%) cited a lower tax burden, while 52% wanted the UK government to keep energy costs at or below the EU average. Other factors that would boost UK manufacturing include improved availability of suitably qualified employees (cited by 42% of the respondents), a simpler tax system (41%) and improved transport infrastructure (39%). When asked what they consider to be “great” about the UK manufacturing sector, 61% pointed to the branding and reputation of UK-made goods, 54% chose the skills of the workforce, and 39% cited the ease of moving goods in and out of the country. A no-deal Brexit would be ‘catastrophic’ for UK manufacturing, Hackitt warns ALMOST HALF (44%) of all UK manufacturers have taken some form of action to prepare for the UK leaving the European Union, according to a survey of 429 senior decision-makers in UK manufacturing firms conducted by YouGov for Make UK, the new name for EEF (see below). Among larger companies (with more than 250 employees), the figure rises to 70%, and with 47% of them either having adjusted their supply chains or considered doing so. Citing these figures at Make UK’s annual dinner in London last month, its chair, Dame Judith Hackitt, warned that a no-deal Brexit would be “catastrophic” for the manufacturing sector, while applying zero tariffs on imported goods “would kill off some sectors of industry overnight”. Dame Judith pointed out that “companies have already taken action to move production overseas and the prospect of leaving with no deal means the UK will be a far less attractive location for manufacturing in the future. “The clock has almost run down and it is now essential that the pantomime in Parliament ends and politicians of all persuasion come together to agree a deal that protects the future of manufacturing and people’s jobs right across the UK. Turning to those who accuse manufacturers of scaremongering, Dame Judith said: “This is very real and very serious. The ninth-largest manufacturing economy in the world needs to be assured that our contribution to UK prosperity is recognised and valued. “The clock has almost run down and it is now essential that the pantomime in Parliament ends” www.drivesncontrols.com March 2019 AFTER REPRESENTING UK manufacturers for more than 120 years, the Engineering Employers Federation (EEF) has relaunched itself as Make UK. It says that at a time when the country and the industrial sector face an “unparalleled” set of challenges and opportunities – including Brexit, digitalisation, automation, artificial intelligence and the emergence of new markets – “it was time for us to adopt a modern name designed to reflect the world- class innovation undertaken by our member companies across the whole of the country.” “We are immensely proud of the heritage that EEF has built up over the century plus,” says Make UK CEO, Stephen Phipson, “but with the massive inroads of modern technology currently being injected into our sector, we felt that our name should be clear and say what we do. “To ensure our members’ voices are best heard, we have introduced an exciting new way to get to issues which matter to our companies through the creation of Make UK’s new National Membership Board which will inform our future direction by considering the organisation’s policy priorities, member services and, of course, specialist support around key national problems, such as skills and Brexit.” Make UK represents more than 5,000 businesses directly as members. The UK manufacturing sector includes around 20,000 companies of all sizes, from start-ups to multinationals. www.makeuk.org n Goodbye EEF, hello Make UK Dame Judith Hackitt: time to end the pantomime