08 May What impact is Brexit uncertainty having on UK manufacturing?
Whilst Brexit continues to play out with no clear or resolute outcome in sight, how are British manufacturers fairing in these stormy political waters?
Some have already experienced contract losses since the referendum in 2016 and more than one in five British manufacturing companies are expected to lay off workers according to a study by the Observer on Sunday.
In addition, fears of border delays, ruptured supply chains and export tariffs means UK manufacturers are altering the way they do business. Instead of investing in the future of their business with confidence, many are stockpiling goods which in turn could threaten the growth of the industry.
In general, the market is seeing a decrease in consumption due to economic uncertainty as well as increased inflation which results in a reduced revenue opportunity. This means many manufacturers are having to pass on the increased costs to account for the squeeze on potential profit. Overall, business confidence is affected, and companies are wise to protect themselves as much as possible in preparation for an unfavourable Brexit outcome.
At Dawson Shanahan, we’ve one eye on the Brexit story too, whilst the other is firmly focussed on the continuation of normal business. In fact, even in this time of turmoil, our business is doing well, really well, and production hit its highest ever in March this year. We’re accounting this growth to our well-earned reputation for quality, reliability and consistency as well as our long history of over 75 years’ experience in precision engineering.
Our long-standing customers trust and rely on our processes. Key to success in manufacturing is the production of high-quality tooling which in turn produces high-quality components. Close attention to the design process produces tools that ensure the finished parts meet every requirement and at a competitive cost. Every aspect of the finished component, including quality, properties, speed, accuracy and repeated high-volume production, relies on the precision and quality of the original tooling.
With such importance placed on tooling, it’s a process that is critical to our design engineers. Creating high-quality tooling, especially for high-speed CNC machines and cold-forming systems is a complex process. Effective tooling design requires a thorough understanding of the conditions that a tool will encounter during the machining or cold-forming process. Design engineers must consider a variety of factors ranging from tolerances, mechanical rigidity, cutting tool strength, machine speed as well as the disposal of waste.
At Dawson Shanahan, all development, tooling production and cold-forming is carried out in-house by our dedicated design and manufacturing engineers. Our quality control and customer support teams ensure every project is carried out on time and within budget. Our approach is to work with each individual customer to develop a programme that offers technical and commercial benefits. It’s this personal, yet reliable and proven approach that sets us apart from other manufacturers. It’s important, that whilst the Brexit waters are making waves on the outside, the production and manufacture of components are calm and smooth sailing.