According to a survey of the industry, Reuters reports that the Brexit process has already begun to hurt almost 40% of the small to medium scale manufacturers of Britain. The “SWMAS and Economic Growth Solutions” in its “quarterly National Manufacturing Barometer”, like “other surveys”, demonstrated “robust manufacturing activity” taking place right now, although a shadow of nervousness regarding the future has been noted.
There are hopes that the small to medium manufacturers will improve their performance over the period of next six months. However, a “similar proportion” thinks that the condition is only going to get worse following Britain’s exit from the E.U. In the words of the C.E.O of Exelin Group, Simon Howes:
“SME manufacturers are sending a clear message to government. The vast majority want to see free trade with the EU maintained to help minimise the cost of imports and keep red tape to a minimum”.
“Some manufacturers are already seeing the cost of materials rise due to recent falls in the value of sterling against the euro and uncertainty over the future of the UK’s trade arrangements with the EU.”
Moreover, the survey also showed that 41% of the manufacturers are already facing “negative impact” due to the process of Brexit. 50% of the survey respondents’ priority was a “free trade agreement with the European Union”. While, Reuters reminded:
“Earlier this month Britain outlined plans for a future customs agreement with the EU and an interim deal to ease companies’ Brexit concerns”.
However, as per a senior E.U. official such suggestions could only be “fantasy”. In fact, in comparison to the previous quarter there has been a drop in the “SME manufacturers’ investment intentions”. While, the “latest official data” reveals that the Bank of England has its hope on sources “net trade and investment” to grow and “compensate for the consumer-led slowdown”.
References:
reuters.com
There are hopes that the small to medium manufacturers will improve their performance over the period of next six months. However, a “similar proportion” thinks that the condition is only going to get worse following Britain’s exit from the E.U. In the words of the C.E.O of Exelin Group, Simon Howes:
“SME manufacturers are sending a clear message to government. The vast majority want to see free trade with the EU maintained to help minimise the cost of imports and keep red tape to a minimum”.
“Some manufacturers are already seeing the cost of materials rise due to recent falls in the value of sterling against the euro and uncertainty over the future of the UK’s trade arrangements with the EU.”
Moreover, the survey also showed that 41% of the manufacturers are already facing “negative impact” due to the process of Brexit. 50% of the survey respondents’ priority was a “free trade agreement with the European Union”. While, Reuters reminded:
“Earlier this month Britain outlined plans for a future customs agreement with the EU and an interim deal to ease companies’ Brexit concerns”.
However, as per a senior E.U. official such suggestions could only be “fantasy”. In fact, in comparison to the previous quarter there has been a drop in the “SME manufacturers’ investment intentions”. While, the “latest official data” reveals that the Bank of England has its hope on sources “net trade and investment” to grow and “compensate for the consumer-led slowdown”.
References:
reuters.com