Which Opportunities Should Manufacturers Take After Brexit?

The future of manufacturing (and the UK’s position in the European Union) is still uncertain, but there’s no denying just how important this industry is to the country. As manufacturers, it is crucial that we do everything we can to ensure its continued growth after we finally leave the EU in 2019.

In order to not only survive but thrive as well, manufacturers must not despair. The truth is that, despite the uncertainty and ambiguity that still surrounds the government’s exit deal with the EU, the economy of the country is strong and opportunities for success will be a-plenty.

So, what should manufacturers keep in mind after we leave the European Union and how can they thrive in that ‘new world’?

Invest in Local

Local opportunities will abound after Brexit, so why not start looking into them right now? The pound is still low, so manufacturers will likely get the chance to re-evaluate their supply chain and seek opportunities to purchase locally. A part might normally take 8 weeks or more to reach a UK manufacturer from China, for instance, but when sourced from a local supplier may be delivered within 2 weeks, 2 days or even a few hours.

Of course, this will depend on the type of business you have, as each individual case needs to be analysed separately.

Negotiate International Deals

A shift in the way the manufacturing industry operates doesn’t have to be a bad thing. On the contrary, it is important for businesses to not only carry on local business as usual but also to focus their energies on forging new relationships and creating new partnerships with other countries, both inside and outside the European Union.

The reason behind this is very simple. A lot of countries around the world are keen to negotiate trade deals with our country that will, no doubt, strengthen manufacturing in the UK. The government is negotiating a trade deal at the moment, which is going to be a key component for the industry, seeing as around 80% of the UK economy comes from providing services.

Taking partnerships with businesses in other countries seriously, European or otherwise, will likely let us ‘spread our wings’ and expand not only UK manufacturing companies but also the industry as a whole.

So, perhaps a balance between local and global might be the best solution for everyone.

Enter New Markets

While approximately 44% of UK exports occurred with other EU countries in 2016 (the equivalent of ￡240 billion in exports), and the trade deals we have with these countries should not be underestimated, Brexit will open up the door to new markets that we haven’t had the chance to access while in the EU – or we will have the opportunity to expand into them even if we missed out before.

Both the Asian and the African markets are continually growing and rely on our manufacturing industry for specific products. The UK is ahead of other countries when it comes to the automotive sector, for instance, with more than ￡71.6 billion contributed to the economy, according to the SMMT.

What this means is that many manufacturers can take advantage of manufacturing’s position to break into new markets or expand current operations.

The Financial Times believes that Brexit will further strengthen the economy, and it seems like our exit from the EU might provide us with opportunities we might not have had before. Seizing them will make all the difference, meaning that manufacturers need to stay on top of changes and be flexible enough to adapt to a new industry.

Despite the uncertainty that clouds the future of the industry, it’s fair to say that we are indeed prospering.

We just need to ensure that we continue to do so.

I am the managing director at Dean Group, a company that specialised in high-quality investment casting.