• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » U.K. Manufacturers Step Up Stockpiling — Again — Entering Brexit Year

U.K. Manufacturers Step Up Stockpiling — Again — Entering Brexit Year

January 3, 2019
Bloomberg

U.K. manufacturers are intensifying their stockpiling efforts as they brace for a potentially disruptive Brexit.

Factories reported an almost record increase in stocks last month, IHS Markit said in a report Wednesday. New orders also picked up as firms and their clients rushed to protect themselves before the March exit date.

“There is increased concern that the U.K. could leave the EU without a deal next March and this will lead to serious disruptions,” said Howard Archer, chief economic advisor at EY Item Club.

The U.K. is set to leave the European Union on March 29, and reaching an exit agreement before the deadline remains uncertain. Crashing out of the bloc may leave companies facing costly border delays. Jet-engine maker Rolls-Royce Holdings Plc said last month it was stockpiling parts in case of customs checks that could slow component deliveries.

In December, the U.K. government stepped up preparations for a no-deal withdrawal, including asking pharmaceutical companies and supermarkets to stockpile drugs and food, and putting 3,500 troops on standby.

Companies from drugmaker AstraZeneca Plc to cigarette producer Imperial Brands Plc have said they would build inventories ahead of Britain’s exit. Retailers, meanwhile, are urging suppliers to ramp up production on concern their shelves will be depleted if there’s no deal.

For manufacturers, increases in stock holdings and a strong inflow of new orders reflected preparations from both factories and their clients, Markit said. Its Purchasing Managers Index for the industry rose more than forecast to a six-month high in December.

Even with the pick up, the overall picture in the sector remains weak. The average reading for the final three months of the year was the lowest since the third quarter of 2016. Manufacturers’ confidence levels are only slightly above the 27-month low in November, with firms citing Brexit and exchange-rate uncertainty as a weight on the outlook.

Any positive economic impact from the inventory accumulation is likely to be short-lived, according to Samuel Tombs, an economist at Pantheon Macroeconomics. Overall growth will likely be below trend in the fourth and first quarters, he said.

RELATED CONTENT

RELATED VIDEOS

Logistics Global Gateways Global Logistics Forecasting & Demand Planning Inventory Planning/ Optimization Sourcing/Procurement/SRM Supply Chain Planning & Optimization Global Supply Chain Management Global Trade & Economics Supply Chain Security & Risk Mgmt Aerospace & Defense Consumer Packaged Goods Food & Beverage Healthcare Industrial Manufacturing Pharmaceutical/Biotech Retail Europe
KEYWORDS Aerospace & Defense consumer packaged goods Europe Food and Beverage Forecasting & Demand Planning Global Gateways Global Logistics Global Supply Chain Management Global Trade & Economics healthcare Industrial Manufacturing Inventory Planning/ Optimization Logistics Pharmaceutical/Biotech Retail SC Planning & Optimization SC Security & Risk Mgmt Sourcing/Procurement/SCM
  • Related Articles

    Drugmakers Stockpiling for Brexit: How Long Do We Wait?

    U.K. Pharmaceutical Manufacturers Will Be Lumped With India, China Upon Brexit

Bloomberg

From Sneakers to Teslas, China Lockdowns Upend Global Supply Chains

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • silicon wafer

    Fate of U.S. Chipmaking Looks More Like Fantasy

    Technology
  • digital work

    Could Data Standards Solve the Supply Chain Crisis?

    Logistics
  • Warehouse worker

    Why Higher Wages Alone Won’t Solve the Supply Chain Labor Shortage

    Warehousing
  • Mobile App

    Podcast | Companies Are on a Shopping Spree for Supply Chain Software

    Technology
  • gas

    Supply Worries Send Gasoline Prices to Record Highs

    Global Supply Chain Management

Digital Edition

Scb feb 2022 sm

2022 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • 3PL Doubles Productivity With Robots to Fulfill Medical Supply Orders

  • E-Commerce Company Cuts Order Fulfillment Time by 40%

  • Fashion Retailer Halves Fulfillment Time With Omichannel Automation

  • Distributor Scales Business by Integrating Warehouse Automaton Software

  • Fast-Growing Fashion Brand Scales E-Commerce Fulfillment With Whiplash

Visit Our Sponsors

Yang Ming Alithya Barcoding
Blue Yonder BNSF Logistics Generix
GEP GIB USA GreyOrange
Here Honeywell Intelligrated Inmar
Keelvar Kinaxis Korber
Liberty SBF Locus Robotics Lucas Systems
Nvidia Old Dominion Parsyl
Redwood Logistics Saddle Creek Logistics Schneider Dedicated
Setlog Holding AG Ship4WD Shipwell
Tecsys TGW Systems Thomson Reuters
Tive Trailer Bridge Vecna Robotics
Whiplash    
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2022 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing