Business will become untenable with a no-deal Brexit, say manufacturers

Undertaken by EEF, the manufacturers’ organisation and ComRes, those surveyed said WTO tariffs, increased border checks on people and goods would most impact their firms.

A quarter said that as a result of Brexit they have experienced, or are expecting to experience, losing out on investment, losing skilled EU workers and losing a new contract.

A similar number expect to change their growth plans as a result of Brexit and 30 percent are finding, or expect to find, it more difficult to recruit workers with the necessary skills.

The survey of 500 manufacturing business decision makers finds with just six months to go until Britain leaves the EU, four in five say that they are currently not prepared for a no-deal Brexit.

Two in five companies say they are not prepared and will not be preparing for what would happen if the Government fails to strike an agreement.

Respondents were uncertain about where future opportunities lie, with 24 percent not clear what their biggest post-Brexit opportunity will be, but there was a definite appetite to take advantage of new trade possibilities.

The survey showed that businesses see America as the top priority for a new trade deal after Brexit, while two in five businesses are already exploring, or expect to explore, new markets outside the EU.

“Today’s research reinforces the need for manufacturers to get a deal to ensure they deliver for the UK economy,“ said Stephen Phipson, Chief Executive at EEF.

“They also desperately require clarity to be able to prepare. It is absolutely crucial that an industry that accounts for 10 per cent of the UK’s economic output and almost half of the country’s exports, prepares for exit day and all its possible implications. But currently over 80 per cent have no plans to prepare for a scenario such as no-deal.

“The Chequers deal is a pragmatic and realistic solution which offers a practical way forward. It is now essential that the Prime Minister is given the backing to deliver on it.”