Manufacturers hope for free trade deal as Brexit starts to bite

​Maintaining a free trade arrangement with the European Union is "a key priority" for Brexit, according to a survey of small and medium-sized manufacturers.

The latest National Manufacturing Barometer surveyed 331 industry leaders about their views on Brexit, and found that around half viewed free trade as imperative. The respondents also stressed the need for the government to move through the negotiations quickly.

The vote to leave the EU has already had a negative impact, according to 41% of manufacturers, while 47% expect business conditions to get tougher once the UK actually leaves. Half of businesses said they felt the government had not taken their needs into account during Brexit negotiations so far.

“SME manufacturers are sending a clear message to government,” said Simon Howes, the CEO of Exelin Group, which conducted the research through its subsidiary SWMAS. “The vast majority want to see free trade with the EU maintained to help minimise the cost of imports and keep red tape to a minimum.”

He cited the rising cost of materials due to the fall in the value of the pound, and continuing uncertainty. “Manufacturers need a firm ground to trade from and, at present, many feel they are standing on ‘shifting sands’. SME manufacturers make up over 95% of industry and their voice needs to be heard. Unfortunately, the survey shows that most of them do not feel this to be the case – the government needs to take heed.”

That message was echoed by Philippa Oldham, head of transport and manufacturing at IMechE. “It is vital the views of industry and manufacturers are taken into account as government negotiates the UK’s exit from the EU,” she told Professional Engineering.

“Manufacturing generates over 45% of all UK exports and employs three million people. Furthermore, as negotiations progress UK businesses should look to firm up local supply chains to address sustainability. This would mean we could import fewer components, and take advantage of the weak pound by exporting more.”