LONDON, Jan. 7 (Xinhua) -- Brexit is the biggest source of uncertainty for three quarters of UK manufacturing companies in 2019, a report said on Monday.
In an annual survey of manufacturing executives by the manufacturers' organization (EEF) and the global insurer AIG, 51 percent of the respondents think 2019 will bring more risks than opportunities, and the top three risks - exchange rate risk, delays at customs and significant upward pressure on input costs - are all mainly related to Brexit.
Any delays manufacturers face to goods crossing through the Dove-Calais route, in addition to other ports of entry, could spell disaster for just in-time manufacturing and those with supply chains integrated throughout Europe and the rest of the world, the report said.
Despite the risks surrounding the UK and global economy, 56 percent of the respondents think the UK will remain a competitive place to be a manufacturer, while only 16 percent disagree.
EEF Chief Executive Stephen Phipson said the spectre of Brexit is now very front of mind for manufacturers, adding that this is bringing with it a whole host of risks from increased exchange rate volatility to rising input costs, which right now are very difficult to plan for.
"The Prime Minister's deal is the right one and it is to be hoped that MPs will return to Parliament this week with the very clear message from businesses that they must back it so we can move forward with negotiations on our future relationship with the EU. No deal is simply not an option for UK manufacturers," Phipson said.
Another survey released on Monday by the Management Consultancies Association (MCA) said efficiency emerged as the top most important current business challenge across the public and private sector, while in contrast more than half of financial services and manufacturing leaders see Brexit as the leading future business challenge.
"It's vitally important that businesses get certainty as soon as possible this month on our future relationship with Europe so they can plan and prepare for Brexit and then get on with the important job of improving the efficiency of their organizations," said MCA CEO Tamzen Isacsson.
