Brexit is bearing down on us at a rate of knots after what seems like an eternity since the referendum. At the time of writing, no-deal hasn’t been ruled out and a deal hasn’t been confirmed, so with just weeks to go until the 29 March deadline, everything is still very much up in the year.
That said, the imminent departure of the UK from the EU block is already causing disruption and making its presence felt across the UK economy.
But what of the manufacturing sector? With so much still up in the air and so much still to be decided with regards to trade, legislation, imports, visas and tariffs, it’s impossible to say what impact Brexit will have on the manufacturing sector. What is clear is that the fear of the unknown is having an impact as everyone waits to see what life will be life outside of the EU.
The latest figures from The Office of National Statistics show that gross domestic product fell by 0.4% in December, with services, production and construction – which are regarded as the drivers of the economy – all shrinking. Looking at the whole of 2018, the GDP growth was 1.4%, the lowest in six years.
The Chancellor Philip Hammond said, “The UK is currently enjoying the longest unbroken quarterly growth streak of any G7 nation” but manufacturing output fell for the sixth consecutive month, putting the industry in recession territory with the longest consecutive decline since 2008.
The general secretary of the trade union TUC said that the spectre of a no-deal Brexit was casting a long shadow, remarking that no-deal needed to be taken off the table: ““With our manufacturing sector in recession, the prime minister must act now to remove the threat of crashing out.”
On top of this, the trade deficit was shown to have widened by a small margin in December.
A slowdown is not restricted to the UK alone. While much has been made of the motoring industry disruption, China – considered one of the strongest economies in the world- has seen its own car sales slow for the first time in more than 30 years. Closer to home, Italy is classed as in recession and Germany’s economy is also slowing. While it is narrowly avoiding recession, analysts predict it will remain sluggish for at least the first half of the year with a strong rebound considered ‘unlikely’. In the US, unemployment may be at historically low levels but retail sales have also slumped.
Wearwell has always been incredibly proud to be a British manufacturer and we champion British production and output. Most of the fabric we use in our workwear is sourced from UK manufactures which are perfectly positioned to support our ever-growing team of machinists. Wearwell does imports fabric and trim from Europe, which is unavoidable, as we believe the fabrics, we use in our garments to be the very best Europe has to offer!
There is no doubt that Brexit uncertainty is unsettling many and lots of details surrounding the UK exit from the EU remain to be clarified but here at Wearwell, we see Brexit as an opportunity and are heading into the future with confidence.