The UK is recovering from a ‘significant challenge’ at the stock level
A new official report from the Office for National Statistics (ONS) reveals the full extent of stock levels and broken global supply chains.
The ‘Stock and Supply Chain Problem in the UK’ focuses on the impact of Brexit, Covid, the blockade of the Suez Canal and other problems.
Parcelhero, an international delivery expert, said the report reveals the full range of manufacturing and retail issues. ParcelHero argues that manufacturers, retailers and their delivery and logistics partners need to plan for increased resourcing (production return to the UK) as the global supply chain breaks down.
David Jinks MILT, head of consumer research at ParcelHero, said: ‘This week’s ONS report highlights the challenges facing manufacturers and retailers in maintaining stock levels during Brexit and the epidemic, and reveals that they continue to face difficulties.
The report acknowledges that: “In recent years, events such as the exit from the EU, the coronavirus (COVID-19) epidemic, high energy and commodity prices and the blockade of the Suez Canal have posed significant challenges to business acquisition and maintenance. Stocks As a result of these challenges, the UK has experienced supply chain problems across a wide range of materials and products, resulting from increased trade uncertainty, global deficits and rising inflation. “
The report, however, underscores the strong claim of Brexit Opportunity Minister Jacob Rees-Mug that Brexit is “already a success”, “extremely beneficial to the country” and that “there is little evidence that Brexit has reduced trade.”
While compiling their report, ONS has received comments from businesses across various sectors including manufacturing, construction and retail.
In particular, the companies complained that they had created the stock for the first Brexit date (March 29, 2019), which was later abandoned. The report further states that British businesses are not out of the woods. “The increase in comments, citing supply chain issues over the last three quarters, indicates that businesses are continuing to struggle. The comments further indicate that this is due to the current economic situation, the UK Customs Union and the UK’s exit from the single market and other issues such as the coronavirus (COVID-19) epidemic and general supply chain problems. “
With all this in mind, it is not surprising that the long-established global supply chain model is breaking down. It could see a British badge-carrying product being assembled in the Far East using Chinese microchips, Japanese casing components and Russian palladium.
‘Today, many iconic British brands are no longer made in the UK. For example, MG cars are now made in China, and the Raleigh wheel and the Murphy Richards Iron in the Far East. Even Brexit-supporter James Dyson has now made his vacancy in Malaysia and moved his head office to Singapore in 2019. It’s hard to believe, but even British chief HP Sauce, named after the House of Commons, has shifted production to Holland.
‘Now, however, in response to these challenges, UK production may be on the brink of a renaissance. Manufacturing company Albert Jagger Engineering has begun shipping its Antilus Fastener range from China back to the UK. This is the first time since the early 2000s that the business at Blockswich has seen a return to business. The company said it was returning its production process to the UK “to improve control at every stage of the production line”.
“Fast fashion” also responded quickly. Ted Baker has launched his Made in Britain range and, this year, Buhu has learned from his previous supply chain problems and opened his own 23,000-square-foot factory in Leicester.
‘Manufacturing from around the world is returning to Britain,’ says Med UK. 40% of resourcing is coming back from China, 30% from Eastern Europe and about 20% from India. It believes that we are on the brink of a fourth industrial revolution that could lead to a reduction in the amount of labor. This would mean relocating low-cost items to the UK.
‘Encouragingly, despite all these supply chain problems, Britain is still the ninth largest producer in the world, producing £ 183 billion worth of goods and employing 2.5 million people. It is a good foundation for construction. ParcelHero believes that the UK’s logistics and delivery companies will soon have to adapt to the UK’s growing manufacturing base. The war in Ukraine can only accelerate this.
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