Precision engineered components have been being made around the UK for decades. But, with Brexit looming, many smaller engineering companies are becoming worried about the future of their businesses. With the UK exiting the EU, what would be the point of mass producing parts for export to the EU? Below we will look at the consequences of Brexit on smallers UK engineering companies.
Precision Engineered Components : Survival After Brexit
The UK is officially in panic mode. Even those who have always resided in the UK are now worried about their future. Although they may not be directly affected by what is happening, indirectly there is not one single resident of the UK who will not be affected in some way. Small businesses are panicking and starting to suffer, and many are now changing their plans for the future.
A fine example of this is a smaller precision engineered components company that has been running well and making a profit for many years. Long term prospects have changed overnight for such companies. Many who were thinking of expanding are now thinking differently. What would be the point of expanding your company within the UK if parts produced cannot be freely exported to the EU. Some small business owners are now thinking of expanding their company but in a very different way. Instead of looking for larger premises in the UK, they are thinking of opening up a secondary factory within the EU. In Poland, in Romania, or indeed in any EU country where rentals of units are low and the wages paid are far lower than the UK national average.
New warehouses are no longer popping up in the UK. They are instead in decline. With uncertainty looming of how supply chains will function post Brexit, no one is prepared to gamble and expand a business within the UK. Another problem that lies ahead is EU safety standards. Once the UK leaves the EU, will precision engineered components need to comply to UK as well as EU standards before export? Will UK products have any worth within the EU?
The future looks bleak. Many optimists believe that the UK is resilient and strong. That the UK and its precision engineering industry will survive. But are these people forgetting to look at the bigger picture? Will trade ties be severed? If so, what will become of our industries? What about workers who are currently EU members working in the UK? Will Eastern European workers still be able to work for a non EU country legally?
Brexit is affecting all industries in the UK, not just CNC. Even small companies who do not export to the EU will be affected in some way. Many believe that nothing will really change, and that the UK will join Norway and Iceland in their free-trading agreements within the EEA. Who knows what the future brings. But one thing is for sure. Businesses are not expanding in the UK at the present moment, and while uncertainty is overhead, everyone will be affected in some way.
No comments yet.