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Construction machinery manufacturers fear no-deal Brexit

20 Oct 20 The UK’s construction machinery manufacturers are getting increasingly fearful of the European Union and the UK government failing to reach agreement on future trading relationships.

According to Rob Oliver, chief executive of the Construction Equipment Association (CEA), a no-deal Brexit would be bad news for his organisations members, which include construction machinery OEMs and their supply chain.

The UK left the European Union on 31st January 2020 with an 11-month transition period. This expires on 31st December 2020. In the absence of a new deal, currently elusive, the UK will trade with the EU on standard World Trade Organization (WTO) terms.

The CEA says that both the automotive and agricultural sectors would be hard hit by tariffs with this arrangement. Among the many concerns of the CEA is that instability in these sectors may put pressure on shared supply chains for manufacturers.

Rob Oliver, chief executive of the Construction Equipment Association
Rob Oliver, chief executive of the Construction Equipment Association

CEA chief executive Rob Oliver said: “We continue to stress to government that the well-being of UK construction equipment manufacturing is linked with that of manufacturing as a whole. Tier 1 suppliers and below often supply to the car and agricultural machinery sectors – and even the aerospace industry. When one sector is in trouble it can cause a ripple effect. With the diminishing prospect of the free trade agreement we were promised, then the rationale for investing in UK manufacturing comes under pressure. With the continuing spectre of Covid-19 still affecting all businesses, we are coming to a watershed moment for our industry”.

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