BRITISH COATINGS FEDERATION
UK REACH major threat to UK manufacturing says coatings industry survey
The latest survey of British Coatings Federation ( BCF ) members reveals UK coatings manufacturers are increasingly concerned about the effects of the new UK chemical regula tions . Almost 80 % of respondents believe UK REACH will impact negatively on their businesses , with the fear that there will be a significant reduction in the portfolio of available chemical substances in the UK compared to the EU , and 67 % of respondents fear higher costs in the future where suppliers pass on the costs of complying with UK REACH . Worryingly , 19 % of respondents are already reporting that EU suppliers no longer want to export to the UK .
The survey also reports challenges for the sector ’ s UK exporters - 60 % fear that having to abide by EU REACH and CLP rules as a ‘ third country ’ will impact on their business competitiveness , and more than four in ten respondents ( 43 %) reported increased operating costs of over 5 %, with one in ten ( 9 %) citing a figure of more than 10 %. These additional cost estimates have increased considerably since the last BCF Brexit Impact Survey at the end of January . On top of these non-tariff costs , the majority of BCF members are still encountering delays to shipping between UK and the EU , and between GB and NI .
Overall , after experiencing nearly six months of the new UK-EU trading relationship , half of respondents are still concerned they risk losing EU export customers , and over a third now worry about their competitiveness compared to EU counterparts as a result of the Trade and Co-operation Agreement ( TCA ) trading terms . 70 % of coatings companies believe their trade with the EU , the sector ’ s main export market , will reduce , and only 20 % see opportunities with the rest of the world from new trade deals .
The full survey results can be found in the downloadable report https :// www . coatings . org . uk / media / download . aspx ? MediaId = 16105 .
Commenting on the survey results , Tom Bowtell , CEO of the British Coatings Federation , said :
“ Our latest survey results show that the added complexity of the new UK chemicals regulations is starting to bite . We have consistently called for UK REACH legislation to be amended to avoid the significant additional costs it will bring to business , as well as its potentially devastating impact on raw material availability to our manufacturers in the UK . Failure to amend UK REACH will lead to our coatings members – and other businesses in similar sectors – seeing unsustainable added complexities and extra costs . Exports of chemical-based products from the UK will be severely threatened by UK REACH , as will foreign direct investment into UK factories , as many companies choose to reduce their manufacturing footprint in the UK and relocate to the EU . Overall , the UK will become a less competitive country to do business in .”
Tom Bowtell , CEO
“ We welcome the fact that Defra has been engaging with industry on the future of UK REACH over the past few months and hope that , even at this late stage , UK REACH can be amended so that it is less damaging to UK businesses .”
Email : info @ bcf . co . uk Visit : www . coatings . org . uk
12 AUGUST 2021 twitter : @ surfaceworldmag