INDUSTRY NEWS
UK border disruption as Brexit bites
Complex customs paperwork and red tape , as Brexit changes take effect , are leading to critical import / export disruption in the UK .
According to research by Make UK ( the UK manufacturing membership organisation previously known as the EEF ), 60 % of UK companies say they were ready for transition to end but are now experiencing disruption and 61 % are also finding their supply chains to be significantly impacted .
Make UK research further revealed that some 61 % of UK businesses are further enduring supply chain disruption either importing or exporting to and from the EU and 32 % are having their supply chains impacted in both directions . Companies are also struggling to prove the UK origin of their goods to qualify for zero tariff access .
“ Customs paperwork urgently needs to be simplified on both sides of the border , so it can be completed and checked quickly before haulage journeys begin and companies can be reassured that their goods have a clear run to the end customer . The increase in paperwork and red tape at the borders has led to substantial delays for trucks , with many left stranded across the Continent because of incorrect paperwork . Many businesses have already taken the hard decision to put a hold on importing and exporting from the EU in the hope that things improve , but this is having a serious commercial impact on companies already struggling to survive the current COVID crisis ,” added the association .
“ UK Government should fast-track the training of good-quality customs agents to smooth the flow at the border . In tandem , exporters and hauliers should be encouraged by Government to work with industry to smooth out the current problems as much as possible ,” it added .
Additional red tape is also being heaped on business as they struggle to prove the origin of their goods to qualify for zero tariffs . Some companies are finding the burden of proving origin so onerous that they are choosing to pay the tariffs rather than spend the additional time and money attempting to qualify for tariff-free access , with serious financial ramifications .
Make UK also pointed out that the deal , as it stands , struck by the UK Government with the EU also fails to provide for mutual recognition of professional qualifications which will pose a ‘ very significant problem for many industries as movement of key personnel to carry out work in the EU will much more restricted ’.
“ If a company wants to send a service engineer to repair a piece of equipment delivered from a UK company as part of the maintenance contract , they may not be able to carry out the service , as his / her UK qualifications won ’ t be recognised . There is also complex paperwork to be filled in to allow business travel ,” commented Stephen Phipson , CEO , Make UK .
Analyst KPMG estimates that Brexit could cost the UK economy 2.9 percentage points in 2021 , bringing GDP growth down to 7.2 % next year .
“ The manufacturing sectors hardest hit by Brexit , including textiles , chemicals and electrical manufacturing , could see output at the end of 2021 between 6 % and 12 % lower than in Q4 2019 . This is down to bottlenecks in supply chains , border frictions and falling investment , as well as the ongoing fallout of the COVID-19 pandemic . Uncertainty and loss of access to the EU market for the UK ’ s financial services sector could lead to 10 % lower output over the same period , while the UK economy as a whole is not expected to reach pre-COVID levels until the end of 2022 ,” commented KPMG in November 2020 .
The analysis assumed that a slimmed-down Brexit deal was agreed by year-end 2020 , which excluded services , and a vaccine is ready to be rolled out in early 2021 , bringing about the end of social distancing restrictions by late Spring .
In an updated forecast on 20 January 2021 , it forecast overall GDP growth of 4.2 % in the UK for 2021 , with the economy not returning to pre-COVID levels until Q1 2023 . n
U . S . precision steel fabrication market
The “ U . S . Precision Steel Fabrication Market - Forecast ( 2020 - 2025 )” report has been added to ResearchAndMarkets . com ’ s analysis portfolio .
“ The U . S . precision steel fabrication market is forecast to reach US $ 2.1 billion by 2025 , after growing at a CAGR of 6.2 % during 2020-2025 . With the growing demand of steel in automotive and construction sectors , the fabrication market is witnessing an increase in market growth ,” said the report . “ Growing purchasing power with industrialisation in the U . S . will further enhance overall market demand during the forecast period .”
According to the report , the stainless steel segment holds the largest share of the U . S . precision steel fabrication market . Stainless steel has strong mechanical properties at ambient temperatures compared to other materials . Its properties , such as ductility , elasticity and hardness , enable it to be used in difficult metalforming modes . Stainless steel is also considered to be a ‘ green ’ material and recyclable .
“ The compressor valves sector has been the primary market for U . S . precision steel fabrication . The automotive sector has been the largest consumer sector for the steel fabrication market . Growing production of motor vehicles is expected to drive market growth for the steel fabrication market ,” said the report .
“ The shift towards electric vehicles in developed and developing nations will increase the growth of existing IC engine vehicles and drive the U . S . precision steel fabrication market over the forecast timeframe , as will the manufacture of new types of vehicles ( electric vehicles ). The demand for steel will also increase .”
Automotive manufacturers are focusing more towards the lightweighting of vehicle and the use of aluminum has increased as it can potentially reduce the weight of the vehicle body .
Higher fuel efficiency , weight minimisation , environmental regulations and policies as well as customer demand are forcing auto makers to develop new materials and re-design vehicles , commented the report . See
www . researchandmarkets . com / r / 5idepo n
ISMR March 2021 | sheetmetalplus . com | 11