Brexit and the supply chain

UK Government advertising is repeatedly asking the question are you prepared for changes’ when the UK leaves Europe in 2021. But no one really knows what to expect. So, CEWales is recommending paying close attention to updates via Build UK

Get ready for a no deal. At the time of writing the EU and UK negotiations on Brexit are still in the balance, but the sensible money is on preparing for a no deal.

What does it mean for the construction sector? We recommend keeping a close eye on what Build UK is reporting. Last week Build UK and the Chartered Institute of Procurement and Supply (CIPS) published a detailed report on the supply of construction materials from 1 January 2021.

The overriding message from all businesses is the need for much earlier engagement across the whole supply chain, along with enhanced forecasting information to anticipate and manage supply and demand issues.

The report will be regularly updated and the latest version on the Build UK website should always be used. The report is intended to help the industry understand the materials supply chain, including where goods are manufactured and how they will be affected by changes in regulations, currency fluctuations, transport arrangements and import duties at the end of the Brexit transition period. The availability of supplies will also be influenced by issues such as ports used for imports, the length of supply chains, and the raw materials used. The level of risk will increase as the level of control over an aspect of supply falls.

Whilst discussions around a trade deal with the EU continue, the industry is preparing for the worst-case scenario – which might mean some delays but will definitely see some increases in prices from anything between 2-8%.

Watch this space.