Manufacturers’ group Make UK has called for a “reset” in the UK’s political and trading relationship with the European Union.
Suppliers from both the EU and further afield are now significantly more cautious about doing business in Britain, according to research by Make UK and business cloud software provider Infor.
Possible reasons for this include the difficult political relationships affecting trade between the UK and EU, the trading landscape having become practically more difficult with the EU and the prospect of regulatory divergence, as well as the broader global challenge for competitiveness being played out between economic superpowers including the EU, Make UK said.
The research also found that 40% of manufacturers had reshored suppliers in the last year and a similar proportion planned to do so during 2023.
Speaking to the body’s annual conference on Tuesday, Make UK chief executive Stephen Phipson said the findings underline the need to build stronger relations with the EU after Brexit.
He went on to welcome the recent deal on post-Brexit trade in Northern Ireland, adding: “Hopefully the agreement reached last week will be the beginning of a new chapter.”
