Tariffs: UK manufacturers urged to future-proof supply chains

Commenting on the impact of US tariffs on UK manufacturers, Mark Crawford, Business Transformation Director at 91探花: “The imposition of US tariffs coupled with China’s response has created a complex and uncertain trade environment for manufacturing businesses. With over 50 countries seeking trade talks with the US, the longevity and the impact of these tariffs on the UK particularly remains to be seen. So far the UK’s approach has been to play the slow game, with the government looking to secure a wider economic deal with the US.  

“With the Industrial Strategy to be delivered in June, the advanced manufacturing sector is outlined as key to unlocking long-term economic growth, so it’s important that businesses take a measured response and consider both the short term and long-term before jumping to any decisions. In the short term, manufacturers need to understand the immediate impact and how to mitigate it. For longer term planning, they need to future-proof their operations and prioritise flexibility within their supply chain models. Leveraging intermediary countries, increasing local manufacturing, and reshoring production are all options that may help to lower the impact of tariffs. 

“Manufacturers also need to rethink their global, regional and local supply chain structures to ensure they are ‘tariff-proofed’ while also being equipped to navigate other shocks. Effective demand management and adaptable implementation plans are therefore crucial to ensure manufacturers can readily respond to changing dynamics such as end-to-end costs, transportation, skills availability, material requirements, technology and data integration.”