Limit the damage to industry, economist tells No 10

MANUFACTURERS ARE calling on the Government to take whatever steps are necessary to mitigate the impact of coronavirus on supply chains after new research showed that exports have slumped to their lowest level in three years.

A survey by Make UK and business advisory firm BDO LLP, taken before the recent escalation of the economic situation, suggested that the sector had ground to a standstill at the end of 2019 as the stockpiles from a potential October EU exit wound down.

While the domestic picture had begun to improve slightly, exports had already fallen sharply in response to a downturn in world trade, a situation likely to be exacerbated by current events, the report warned.

A separate snap poll of companies by Make UK indicated that more than a third of companies believed EU customer sentiment has worsened since Brexit.

The results showed that European customers are now looking away from the UK, further threatening exports to the UK’s major market, said Make UK.

Make UK chief economist Seamus Nevin said: “Even before the current situation, the shocking drop in exports could not have come at a worse time ahead of potentially difficult trade talks where the clock is running down fast.

“It is now vital that Government works with industry to limit the damage to industry and take whatever steps are necessary to safeguard skills in particular.”

Tom Lawton, the head of manufacturing at BDO, said: “As coronavirus fears take hold and the impact on the sector’s crucial supply chains remains largely unknown, businesses should be preparing themselves for more volatility this year.” The survey was carried out among more than 300 companies, while over 100 took part in the snap poll.