• 29/01/2021

UK manufacturers urged to radically rethink supply chains

Two thirds of UK manufacturing firms are planning to introduce dual or multi-sourcing for key components to avoid supply disruptions caused by COVID-19.

This is according to a new survey from accountancy and business advisory firm BDO.

In a survey of 206 manufacturing businesses conducted by Make UK and BDO in November 2020, almost 9 in 10 manufacturers said they had reviewed their supply chains in response to the pandemic.

In total, 59% of respondents said they planned to diversify their supply chains, with 46% saying they planned to create a UK focused supply chain. 33% said they would focus on reshoring the manufacturing of goods to the UK.

However, 27% said they were looking to diversify their supply chains across different countries in the EU, while the same proportion said they were likely to diversify in countries outside the EU.

New Brexit rules which came into force following the UK’s withdrawal from the Single Market and Customs Union on 1st January 2021 have introduced new trade frictions which could also lead to further supply chain disruption and reorganisation.

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Source: https://www.pesmedia.com