According to a report by Make UK, factories in the north-west and West Midlands of England are experiencing the negative impact of a post-Brexit structural shift in trade. The analysis conducted by the manufacturers’ trade body reveals a consistent decline in the proportion of trade going to the European Union (EU) for factories in England and Wales.
Make UK’s findings indicate that from 2020 to 2022, Scotland and Northern Ireland were the only regions within the UK to witness an increase in their share of exports to the EU. On the contrary, the majority of English regions, as well as Wales, suffered a decline in the percentage of sales directed towards the EU.
This trend highlights the challenges faced by factories in England and Wales since the UK’s departure from the EU. The report suggests that these regions are grappling with the consequences of a significant shift in trade patterns, which has negatively impacted their ability to export to the EU market effectively.
The implications of this decline in trade with the EU are particularly pronounced in the north-west and West Midlands, where many manufacturing industries are concentrated. These areas have historically relied on exporting goods to the EU, and the decrease in their share of EU exports is putting additional pressure on local factories.
The report sheds light on the urgent need for strategic measures to address this issue and support the adversely affected regions. It is crucial for policymakers and industry leaders to identify alternative markets and diversify trade relationships beyond the EU. This could involve exploring new trade agreements with non-EU countries or strengthening existing partnerships with nations outside the bloc.
Furthermore, the findings underscore the importance of investments in innovation, research and development, and skills training within the manufacturing sector. Enhancing productivity and competitiveness can help mitigate the adverse effects of the post-Brexit trade shift and enable factories in the north-west and West Midlands to adapt to the changing trade landscape.
Addressing these challenges requires a collaborative effort from both the government and the manufacturing industry. By working together, they can develop targeted strategies to support affected regions, promote exports to new markets, and ensure the long-term viability of the manufacturing sector in England and Wales.
In conclusion, Make UK’s analysis reveals a concerning downward trend in the proportion of trade going to the EU for factories in England and Wales. This post-Brexit structural shift in trade is particularly impacting the north-west and West Midlands, highlighting the need for immediate action to mitigate its effects. Diversifying trade relationships, investing in innovation, and fostering partnerships will be crucial in safeguarding the future of these regions’ manufacturing industries.
