UK Manufacturers Build Financial Buffers for Brexit
Posted 31st January 2019 in News For Businesses
British manufacturers have reported that they are being forced to create financial buffers in preparation for a no-deal Brexit.
The cost of stockpiling goods and materials is placing UK businesses under strain, reports The Guardian, with Airbus and Brompton Bicycle confirming that they are among the number of the UK-based manufacturing who have begin stockpiling funds.
Santander, one of the UK’s biggest lenders to businesses, claims its manufacturing clients are building cash reserves.
Paul Brooks, head of manufacturing at Santander UK, commented, “In recent months we have seen manufacturers choosing to build up cash reserves and delay investments due to uncertainty over the economy’s outlook.
“We are working closely with our manufacturer customers to support them through this period, including helping them to manage their cash flow, spread the cost of buying assets and explore export opportunities in new international markets.”
Stephen Phipson, chief executive of manufacturers’ association EEF (formerly the Engineering Employers’ Federation), stated, “Increasingly, companies are conducting in-depth audits of their supply chains to make cost efficiencies, while many are also reshoring where possible. We continue to talk to banks and other financial institutions on behalf of our members in order to make sure they have the financial support necessary for this extra expenditure.”