Wednesday, April 13, 2022 5:59 p.m.

As the government admitted last week that there were ‘significant challenges’ to UK stock levels due to Brexit and Covid, then is relocation perhaps the answer?

Last week’s government report, from the Office for National Statistics (ONS), revealed the full extent of falling stock levels and the disruption of global supply chains following Brexit and the Covid pandemic.

“Stock problems and the chain of supply in the UK” examines the impact of Brexit, Covid, Suez Canal blockage and other problems.

The report states that “in recent years, exit from the EU, the coronavirus (COVID-19) pandemic, rising energy and commodity prices and events such as the blockage of the Suez Canal have presented businesses with significant challenges when acquiring and maintaining their inventory. .”

The ONS said that: “As a result of these challenges, the UK has seen an increase in business uncertainty, supply chain issues across a variety of materials and products linked to shortages. in the world and inflation. »

Relocation

Following the findings, some industry leaders say ‘reshoring’ – bringing manufacturing back to the UK – will help avoid the impact of breaking strained global supply chains.

The report reveals the full extent of manufacturing and retail issues, said David Jinks, head of consumer research at international delivery company ParcelHero.

Jinks said AM City that manufacturers, retailers and their delivery and logistics partners will need to plan for growth in relocation (return of manufacturing to the UK) as global supply chains separate.

“The ONS report has laid bare the problems manufacturers and retailers had in maintaining inventory levels during Brexit and the pandemic and reveals that they continue to struggle,” he said.

“The report arguably undermines Jacob Rees-Mogg’s extraordinary claim that Brexit is ‘already a success’. »

david jinx

Jinks continued: “The report surely undermines the extraordinary assertion by Jacob Rees-Mogg, Minister for Brexit Opportunities, that Brexit is ‘already a success’, has been ‘hugely beneficial to the country’ and that ‘proof that Brexit has caused a decline in trade is rare and far between.

Made in Britain

Today, many iconic British brands are no longer made in the UK.

For example, MG cars are now built in China and Raleigh cycles and Morphy Richards irons in the Far East.

Even Brexit-support James Dyson vacuums now its in Malaysia and moved its head office in Singapore in 2019.

“It’s hard to believe, but even the British base of HP sauce, named after the Houses of Parliament, has moved production to Holland,” said Jinks.

Manufacturing Renaissance

Despite all these supply chain issues, Britain is still the ninth largest manufacturing nation in the world, producing £183bn worth of products and employing 2.5million people.

“It’s a good base to build on. British companies logistic and delivery will soon adapt to a British manufacturing base growing. The war in Ukraine can only accelerate this,” Jinks said.

In fact, UK manufacturing could be on the verge of a renaissance in response to these challenges, he pointed out.

For example, Albert Jagger Engineering manufacturing company started relocating its range of fasteners Antiluce UK from China.

It will see the company return to its Bloxwich facility for the first time since the early 2000s. The company says it is moving its manufacturing process back to the UK ‘to improve control over every step of the chain of production,” Jinks said.

Ted Baker and Boohoo

The fast fashion industry also reacted quickly.

Ted Baker introduced its Made in Britain range and this year Boohoo learned from its previous supply chain issues and opened its own 23,000 square foot factory in Leicester.

Back manufacturing in the UK has significant benefits, including reducing the carbon footprint of products, reducing delivery times and costs and ensuring quality through continuous monitoring rather than relying on samples.

Morever, the body of trade Made UK said recently that the production is back in Britain around the world.

40 percent of the headframe is back in China, more than 30 percent in Eastern Europe and nearly 20 percent has returned from India.

“He believes that we are at the dawn of a fourth industrial revolution which could lead to reduced content of work. This would mean the head frames of low value items in the UK “said Jinks.

Not out of the woods

Despite the encouraging signs, the findings of the ONS revealed that British businesses are not derived from case.

When writing his report, he received corporate input from various sectors, including manufacturing, construction and retail.

In particular, companies complained that they had stockpiled for the first Brexit date, March 29, 2019, which was later scrapped.

“The rise in comments citing supply chain issues over the past three quarters indicates that businesses are continuing to struggle,” the report said.

“The comments also show that this is the result of current economic conditions, the UK’s exit from the EU customs union and single market, and other issues such as the coronavirus pandemic (COVID- 19) and general supply chain issues,” the ONS said. added.

“This could see a UK-badged product being assembled in the Far East using Chinese microchips, Japanese case components and Russian palladium,” Jinks commented.

“With all of this in mind, it’s little wonder that the long-established global supply chain model is crumbling,” he concludes.