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How Will Brexit Affect UK Manufacturing?

Robert Gavin - Director
brexit manufacturing

The UK has been up in arms about Brexit for years now and it’s taken us this long to actually get anywhere with it. After the whole drama of 'Will we/won’t we leave?', 'Are we having another referendum?' and even 'Deal or no deal?', we have a date. It’s been a long time coming but we’ve got a leaving date. On 31st January 2020, we’ll be leaving the EU which means that the 1st of February the UK will officially be on its own.

Whether you had voted to leave or remain in the EU we are officially going. But what does that mean for UK industries?

Will Brexit Be Bad For Manufacturing?

Depending on the deal that the UK strikes with the EU, manufacturers might also have trouble accessing the entirety of the free market.

It’s hard to say for definite that Brexit will have a negative impact on manufacturing in the UK. It is entirely dependent on how the rest of the world will react, which means that they are somewhat in control. Organising trade agreements with other countries like China, the USA and even the rest of the EU will have a direct impact on how to move forward.

After an interview with the BBC, Boris Johnson said that he has had to “budget for a complete failure of common sense”. He infers that there is a chance that the UK will leave the EU without a deal which means that manufacturers would be trading on the World Trade Organisation terms. If this happens, we would have to pay tariffs and adapt projected timelines to allow for port delays.

Depending on the deal that the UK strikes with the EU, manufacturers might also have trouble accessing the entirety of the free market.

Will Brexit Be Good For Manufacturing?

There is an idea that Brexit might promote the purchasing of materials from within the UK.

Depending on how you look at it, there could be a silver lining to Brexit. While finding it is tricky, because there are so many arguments for and against Brexit, there is an idea that Brexit might promote the purchasing of materials from within the UK. This would be brilliant because we’ll be investing in our own economy and UK companies. However, this really works best is a closed economy in which we only trade within the UK. While this isn’t likely to happen, Brexit might yet promote the usage of UK materials and companies in the future. The slight downside to this is that the prices of products and materials might rise due to sourcing them within the UK.

Some people also think that being outside of the EU will make it easier for the UK to build and maintain trade relationships with other countries. Without an obligation or ties to the European Union, the UK might have a better chance at developing trade agreements with other countries to ensure growth and a continuation of UK development. The United States of America has been a vocal part of this, telling the media that they are more than willing to create a trade agreement with the UK.

What To Expect Over the Coming Year?

Starting on the 1st of February, the UK will enter a transition period. Most of the UK businesses and indeed the rest of the world, will be standing and staring as the UK navigates a minefield of opportunities in order to get the most out of Brexit.

What is the Transition Period?

So, regardless of any transition period being in place, the UK will formally have left the UK on the 31st of January. But that doesn’t mean that this is the end of the Brexit extravaganza. 

Instead, this means that the UK is going to be in something called a ‘state of transition’. This is going to last until the 31st of December and having promised that this date won’t change, Mr Johnson needs to get moving. 

What Will Happen in the Transition Period?

During this transition period, the UK is still going to fall under the EU trading relationships and so we will be subject to their laws and regulations regarding this. We’ll be following the EU rules and accepting that the European Court of Justice still has control. Similarly, until the 31st of December, the UK will need to contribute to the EU budget.

This period of time is going to allow for the UK and the EU to continue negotiations for trade agreements and other matters that might concern the UK, such as its fishing rights in its own waters and whether or not the EU can have access to them.

Due to the fact that nearly 50% of the UK’s trade is done with the EU, Boris Johnson is looking to ensure a free trade deal for the future. This would mean that we will be able to trade with members of the EU without tariffs or any other possible barriers.

About Rob Gavin, Aluminium Bending Specialists:

Rob has driven ABS Ltd’s (Aluminium Bending Specialists Ltd) success for a number of years now. Serving the UK, ABS Ltd offers a bespoke aluminium bending service and helps to create tailor-made buildings. They are also the UK’s leading aluminium window company, creating arched and porthole windows for commercial and domestic. 

Click here to visit Aluminium Bending Specialists' website.


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