This fortnight in manufacturing: Post-Brexit import fallout and warmer freezers

Manufacturing is growing, again. The last fortnight saw the release of the latest S&P Global UK Manufacturing Purchasing Managers’ Index? (PMI?). The economic indicator score rose to a two-year high of 52.1 in July, with expansion in output, new orders and employment.?

With this positive start to the second half of the year, can we look ahead with cautious optimism? It’s worth noting that there are pieces still due to fall into place – like a potential EU veterinary agreement, the 2023 Procurement Act and the future of conflict in the Middle East.?

We catch you up on the last two weeks in UK manufacturing.??

New rules for EU imports continue to cause difficulties: In April, the rules changed for imports of some animal and food products from the EU. For food transporters, manufacturers and retailers, the teething problems continue. This fortnight, trade bodies issued an open letter to highlight that there are not the adequate testing facilities to enact the required tests – forcing some imports back to the EU and raising costs.??

The government has promised a new veterinary agreement with the EU, easing the burden on traders and logistics providers. If this is achieved and the border checks are no longer required to the same extent, UK ports will seek compensation.??

In a recent webinar, we spoke to Tom Southall , Deputy CEO of Cold Chain Federation , one of the trade bodies signing the open letter, alongside Anna Doherty , Senior Trade and Customs Specialist at The Chartered Institute of Export & International Trade . Read their expert insights on the Border Target Operating Model (the document behind the changes) here.?

More eagerly awaited Government decisions: The chief executive of key manufacturing body Make UK and the heads of the Trades Union Congress have joined forces to urge the new Labour government to act quickly on a UK industrial strategy, or risk losing foreign investment. This fear of UK manufacturing falling behind is fuelled by news that UK has dropped out of the top ten manufacturing nations globally for the first time, and worries about the cuts to infrastructure announced by Chancellor of the Exchequer Rachel Reeves.??

Inspiration station: To reduce emissions and cut costs for the consumer, Morrisons is leading the way by increasing its frozen food temperatures. A spokesperson claimed that if the entire supply chain globally increased frozen food temperatures by just three degrees, there would be a significant reduction in carbon emissions at no risk to food safety. Food manufacturers – would you consider raising temperatures used to store frozen ingredients and produce???

And globally? China’s manufacturing activity saw an extended decline in July, with decreased domestic consumption.???

What else did we cover this fortnight? If you are a manufacturer who bids for government contracts, it is important to be aware that the way public bodies contract their suppliers is changing soon – from October of this year. Read our blog: The Procurement Act 2023 as a supplier. We also covered how to get the best out of your food manufacturing workforce.??

See you in two weeks!?