British manufacturing companies, affected by high costs and the consequences of Brexit, are accelerating the ‘relocation’ of their supply chain, says Make UK. They are also increasingly turning to local suppliers.

The industrial lobbyist, in a study published on Tuesday, highlights in particular the ‘relentless pressure on companies’ supply chains due to rising costs and geopolitical uncertainty’, leading to ‘unacceptable’ delivery delays.

Consequently, manufacturers “continue to relocate their suppliers, 40% have done so in the last year and a similar number plan to do so in the next twelve months,” the agency continues in a statement, confirming a trend revealed in a previous report. in May.

British companies are also investing in technological tools to better manage their supplies and adjust the number of their suppliers, according to the association.

‘Difficult political relations’

Rising costs, particularly with rising raw material prices, but also transport and energy, is the biggest driver of disruption to supply chains, Make UK points out in its survey. Suppliers in the EU, and even beyond, are also less inclined to supply UK companies, Make UK adds, citing in particular the “difficult political relations” between London and Brussels.

The problem is even more significant as more than a fifth of UK suppliers are based in the EU, according to Make UK.

With this in mind, the organization’s chief executive, Stephen Phipson, welcomes the compromise between London and Brussels, announced at the end of February, on post-Brexit arrangements in Northern Ireland, hoping to see it as “the start of a new chapter” between the UK and the EU.

/ATS