13 September
By Chris Gumbley
Categories: Business

Protecting your business – A guide for manufacturers

Protecting your business – A guide for manufacturers

Are you worrying about business post-Brexit? Our experts have put together some practical planning steps you can take to help to protect the long term success of your business as the 29th March 2019 ‘exit day’ looms.

Keeping up with the day to day pressures of running a business in the manufacturing sector can be difficult in itself but in a time where there is ever increasing uncertainty around Brexit, it’s important that you find time to consider some practical planning steps you can take to help to protect the long term success of your business as the 29th March 2019 ‘exit day’ looms.

Although planning for Brexit seems like an impossible task, there are number of challenges that a manufacturing business may come across and you should look to have contingency plans in place that are flexible enough to cope – despite the diversity of potential outcomes. The EEF reports that 45% of all UK exports are from manufacturing and as the EU is the UK’s largest trading partner, manufacturing business owners really need to start thinking about life post-Brexit.

Key areas that you may wish to consider

Movement of Goods

HMRC are proposing a phased introduction of a new Customs Declaration Service (CDS). Regardless of the outcome of the EU exit negotiations, have you started to think about the processes and systems that may need to be in place?

Supply Chains

Supply chain mapping should be an important part of your Brexit planning. To help you assess the possible tariffs that may apply you should know where your inputs come from and what product category they fall into.

For many businesses that have known only the single market and have not previously been subject to a customs environment for their trade with the EU, a transition to customs procedures could come as big surprise.

Financial Planning

It is possible that more complex port procedures could come into force tying up additional working capital for you as a manufacturing business importing goods and VAT (and any tariffs) might be payable at port on EU imports. With potential reduced financial certainty, it’s more important than ever to have detailed cash flow projections in place to help you manage the possible peaks and troughs in your cash balance effectively, ensuring your business stays on track and continues to meet your financial objectives. 

Contracts

Will your contractual agreements be affected as a result of Brexit? Do they clarify the terms for trade across EU borders including how VAT is dealt with?

Immigration status

With uncertainty increasing, the rights of EU citizen employees in post-Brexit UK may need to be considered as part of your planning process.

Product Compliance

The UK may continue as a full member of the European standards system following Brexit but this is not guaranteed. As a manufacturing business, consider starting to ensure the database of standards that apply to you are up to date and accessible to your team.

 

About Bradford Manufacturing Week

Naylor Wintersgill are proud to sponsor Bradford Manufacturing Week 2018 which is taking place from 8th – 12th October 2018.

The unique initiative launched by Bradford Chamber of Commerce, aims to showcase the district’s manufacturing might and inspire, encourage and educate young people around the opportunities for a fulfilling and rewarding manufacturing career.

If you would like to find out how you can help us shape the future of Bradford’s manufacturing industry and open the door of opportunity for our district’s young people, visit the Bradford Manufacturing Week website here.