A new survey
published by EEF, The Manufacturers’ Organisation, shows that with just
six weeks to go until the UK leaves the EU, less than one in five (18%) of
manufacturers are prepared for a no-deal scenario.
While 63% of
companies have embarked on a course of no-deal panning, 8% have yet to start
any planning for crashing out of the EU and a further 9% have no plans to make
any preparations whatsoever.
Unsurprisingly, 84%
of companies remain concerned about the impact on their business of a no-deal
Brexit, with 64% of manufacturers saying this would immediately result in price
increases on products. None of our survey sample of companies said they would
be able to cut prices in the event of a no deal Brexit.
As the Brexit
countdown reaches its conclusion, EEF conducted a small snap survey of members.
Respondents remain concerned that Government will not manage to reach a deal
with the EU, with more than half (54%) fairly or highly sceptical that
Government will manage to avoid a no deal. However, a quarter (26%) said they
were very or fairly confident Theresa May will secure a deal for Britain.
Almost one third
(29%) of manufacturers say a no deal Brexit would mean job cuts. And when asked
about the best way to avoid a no deal, 40% supported a complete revocation of
Article 50 but almost one in five (23%) thinks Parliament should back the Prime
Minister’s original deal. A further 28% believe she should drop her red lines
and negotiate a new deal and fewer than 5% think the Government should hold
tight and hope that the EU blinks first.
Stephen Phipson,
Chief Executive at EEF, said: “(This) research should serve as a wake-up call
to Government – manufacturers need a deal to be able to deliver for the UK
economy – a no deal is simply not an option and would be catastrophic for our
industry and the 2.7million jobs it provides around the whole of the UK.
“Without the clarity
businesses have so desperately needed for the last year, the have been unable
to prepare and that is why so many are in the dangerous situation of having
been unable to make any concrete plans. That one in five UK manufacturers are still
not prepared for a no-deal scenario, which is looking more likely with every
day that passes, is terrifying.
“British engineering
and manufacturing had been one of the great success stories for hundreds of
years but the Government is putting this at risk as the clock ticks perilously
close to a no-deal landing. We urge MPs to help the Prime Minister secure a deal
when her next set of proposals come back to parliament. We have run out of time
for political posturing and game playing.”
