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provides roughly a third of the UK’s car components – “So, if we deter EU importing we could end up without a UK car industry.”
Because of such risks, Strutt urged that frictionless trade, avoiding potential border delays, should be key in Brexit negotiations.
Andrew Knott
Lane agreed, but also stressed the need to focus on quality UK manufacturing “As long as people watch and support motorsport there will be a demand for Xtrac’s product.”
Will Brexit bring worrying skills shortages?
UK manufacturing already lacked skilled people, stated Strutt. Even an immediate boost in training and apprenticeships would take years to bring talent through.
Stephen Lane
Brexit could exacerbate the problem. “Our members tell us that, whatever the Brexit deal, they want to be able to fish in the European talent pool.” EEF would be lobbying hard, because employment worked both ways. Some UK employees go to Europe for broader development training, experience, and collaborative reasons.
Murray mentioned that UK manufacturing employs 185,000 EU nationals. “That doesn’t seem very high?”
Wyndham Lewis
Seasonal agriculture, hospitality and retail sectors would have more need of EU labour, suggested Ryan. His worry was established EU workers leaving the UK because of Brexit. Attracting them back could be very difficult.
Foreign student visa restriction was the chief concern for Lewis. Reductions in European students coming into UK higher education would significantly impact future skilled job applications, particularly for UK hi-tech and research-based industries.
Martin Strutt
“Adherence to 100,000 net migration will be absolutely disastrous for our commercial base going forward. And, if we will lose students, our HE structure will decline.”
Have we taken in the ‘Welcome’ mat?
Bion’s workforce is 20% eastern European – “motivated, intelligent, flexible, knowledgeable and hard-working people who have work-values above other applicants.
“We are recruiting, yet they are not applying. Our pay is above the national average, so it’s not to do with pay. We have foreign nationals who have been with us 10 years, made their lives and homes here, pay their taxes. I feel our country is not doing well by them.”
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Clarke agreed: “People want to work here, but today they are worried their residential security is not assured.”
Lewis, noted that their earnings, often sent home, are also now worth 20% less. “The UK is losing its sheen. It is absolutely clear that unless policy changes very quickly the UK will not be seen as a place for those high-value individuals to come and work, and other countries will gain them.”
A rational non-political discussion was required, which businesses had to demand of government, or the country would be held back. Knott agreed: “We are in a void at present.”
The dangers of political posturing
“During Brexit negotiations, we are going to see stuff that scares the daylights out of us. It’s happening already, but after all the political posturing, I don’t think it will end up like that,” said King.
Ryan agreed that many politicians were making ‘newsworthy’ statements to further their political careers – ‘they need to be seen saying certain things.’
The UK has to be careful about the post- Brexit environment it creates, said Cooper. “For example, any extra doubt, paperwork or cashflow delays could kill startups.”
Cooper noted that many university startups have European founders, who choose to locate close to London and within UK’s strong economy. “I suspect that will change and they will now choose Berlin, Amsterdam, or Paris.”
Ryan: “Many English-speaking businesses come here to avoid language barriers.” Ireland could benefit from Brexit as the next closest English-speaking link to Europe.
As one Roundtabler added: “We need to put commercial and economic reality ahead of all the political shenanigans.”
Shout louder and adopt a Singapore-lite strategy?
“Is the manufacturing sector not lobbying loud enough?” asked Murray.
Lane: “We are saying a lot, but whether it is being listened to is a different matter.”
The EEF was lobbying strongly for frictionless trading and unrestricted employment of skilled people, said Strutt. “I think that message is heard, but it’s now about how effective our negotiators can be in securing that deal, and at what cost.”
Lewis suggested UK manufacturing and exporting could become vitally important post-Brexit. In a few years, with companies relocating and inward investment declining, the UK economy, and any
THE BUSINESS MAGAZINE – JULY/AUGUST 2017
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