A no-deal Brexit will be unevenly felt throughout UK manufacturing. While businesses will struggle meeting product standards and managing customs delays, those that have taken the time to plan and prepare, using analytics and the latest Enterprise Resource Planning solutions, will be best placed to adapt. However, anyone that hasn’t will need to act fast or risk being unable to continue without a serious cost to their business.
The challenges faced will vary depending on the operating model of each business. For example, those who can move from just in time models to a stock retention focus, or begin shipping in larger volumes, will be able to adapt more easily. This will depend on their agility, business structure and available cash-flow.
The winners and losers of 2020 will mostly stay in the same position in 2021. Businesses that have managed the disruption of 2020 well will be in a better position to adapt, while those that haven’t will be hit hardest. Industries like pharmaceuticals will be well placed to face the disruption due to their success through the previous year. Automotive and aerospace manufacturing, whose demand shrunk dramatically during 2020, will likely see their poor luck continue into the new year. This may well result in cut-backs, redundancies and even in some cases business closures. Despite this, those who invested early in technology and safeguards against disruption will be able to cope after a period of disruption, with pent up demand giving a potential boost to those in a position to take advantage.