PSSA Newsletter - Issue 31

– 21 – ISSUE 31  | NEWS PSSA Brexit survey Jen Shail reports on the findings of the PSSA Members Brexit survey It’s been five months since the end of the Brexit transition period, therefore we wanted to look at the impact of the new trading conditions amongst the PSSA members. With members based around the world, the PSSA has the chance to gather feedback from all sides and to consider the overall impact of trade between the UK and Europe. Brexit has been challenging for many companies particularly when coupled with the impact of COVID-19. These challenges manifested themselves in reports of supply chain shortages and problems transporting goods both in and out of the UK. However, it is good to note that the majority of PSSA companies have experienced little or none negative impact on their business from the post-Brexit arrangements trade deal. We asked our UK based PSSA members, what impact Brexit has had on their business: V 38% said they have seen a negative impact V 46% said they have seen no impact V 8% said they have seen a positive impact V 8% said they have seen a very positive impact The main issues focussed around the additional paperwork companies are required to complete, with shipping delays also experienced, which is having an impact on the availability of materials at all levels. However, many companies were able to pre-empt the paperwork problems by good preparation and committing extra resource to handle the additional forms required. Although the majority of respondents did not have a negative view of Brexit they did cite future concern if customers impacted by delays no longer want to work with UK suppliers or that there may be a reluctance to place further orders. For PSSA member companies based within Europe the feedback was mainly negative. As with UK based companies, their European counterparts stated the complicated customs clearance and the increase in shipping costs caused the most problems. Members also reported pre-tender questionnaires requesting disclosure of any British products to be supplied, and if alternatives are available. This might present future problems for British manufacturers. To get a full picture of the worldwide impact of Brexit we called upon our members outside the UK which also reported some negative business aspects. However, these mainly stem from an increase in material prices, as well as expected delivery delays. Conclusion: There are clearly a number of inter-related issues which make it difficult to assess whether Brexit will be seen as a success going forward. Certainly there have been some initial challenges in coming to terms with new trading requirements. However, the implementation of Brexit has coincided with a general global economic recovery, and a specific reboot of the Chinese economy, which has placed exceptional pressure on shipping and raw material costs. For example, both steel prices and availability has become a major issue for many manufacturers. The UK market itself has been bolstered by significant infrastructure investment and an encouraging construction pipeline. At the moment the UK’s regulatory framework continues to be aligned with that of the European Union. The introduction of the UKCA mark will not take full effect until 1st January 2022 and, at the moment, can be used alongside the familiar CE mark in the UK market. Special arrangements apply to Northern Ireland. The UK government have not yet fully signalled what will need to be in place if and when there is regulatory divergence between the UK and the EU. Brexit not only gave the UK full control over its laws and regulations, but it also has new found freedom to enter into bilateral trade deals. Negotiations are well advanced for an Anglo-Australian free trade agreement and there are similar aspirations for an agreement with the USA, which may be longer term. We will conduct another Brexit survey later in the year to see how the situation evolves. Negative No Impact Positive Very Positive