There are still a lot of uncertainties regarding Britain’s future after Brexit.
The government is negotiating a Brexit deal that would allow UK companies to remain in the EU Customs Union, at least during the transition period. This means manufacturing companies can still export goods to European countries without worrying about tariffs and additional fees.
That potential deal aside, experts believe that the future is bright for UK’s manufacturing industry. There are several new avenues waiting to be explored and we have the top three opportunities to look into in this article.
The Asian and African markets
While maintaining trade with Europe is a must, the biggest demands of today come from the Asian and African markets. Asian countries such as China and India rely on the advanced manufacturing industry in Britain for specific components and products. These demands are severely underutilised, leaving enough room for the entire manufacturing industry to expand.
The new markets are benefiting a particular part of the manufacturing industry, mainly the high-tech and automotive manufacturing sectors. These are the sectors where Britain is ahead and will remain so for years to come. Now is the perfect time to capitalise on that competitive advantage and break into new markets in Asian and African countries.
The appeal of these wide-open markets also come from the fact that local manufacturers are actively seeking partnerships for the purpose of transfer of technology. UK manufacturing companies can take advantage of the opportunity to further expand their operations.
We can’t talk about lucrative opportunities the manufacturing industry should explore without talking about government spending. The British government is still the biggest consumer of goods and services in the country, spending more than £780bn this fiscal year. That spending is expected to exceed £800bn in 2018.
Entering government tenders and pursuing projects by local authorities and central government requires manufacturing companies to meet certain regulations. Fortunately, there are third-party services and consulting firms ready to support UK companies in complying with said regulations. Executive Compass, for example, has been assisting businesses in writing bids and organising tender documents in various industries.
There are also online resources that grant access to government contracts. The government’s own Contracts Finder is a good place to start for any manufacturing company looking for new opportunities in this market. The tool searches for contracts worth more than £10,000, as well as an array of other opportunities.
It is not a secret that many UK companies are already working on establishing new partnerships with European companies. These partnerships are established to anticipate tariffs and regulation changes as the Brexit negotiations continue.
Now is the perfect time for the manufacturing industry to take partnerships with European companies more seriously. Agencies are helping small and medium businesses find the right partners based on specific parameters. Even individual European governments are making it easy for UK businesses to establish their operations there.
These new opportunities present plenty of room for the manufacturing industry to grow. What’s important is that businesses in this sector act quickly and take advantage of the opportunities available to them with the right strategy.