The Make UK – BDO survey also reveals that Britain’s manufacturers were seeing their dependence on the EU as an export market decline even before the impact of full departure and the agreement of a trade deal.
The survey shows that in 2020 five English regions together with Wales saw their percentage of exports going to the EU fall, in two regions the share stayed the same and only the West Midlands and Scotland saw exports to the EU increase.
Make UK says this shows that the political uncertainty caused by leaving the EU was beginning to be felt even before the actual departure and the signing of the trade deal at the end of 2020.
The most recent quarterly trade data shows exports to the EU in Q1 were still 16% below Q1 2019 which Make UK says backs anecdotal evidence that many companies were already choosing not to supply the EU or, that EU customers were turning away from UK based companies.
Stephen Phipson, Chief Executive of Make UK, said: “It’s clear that even before our final departure from the EU that political uncertainty was hitting exports to the bloc. While opportunities are opening up elsewhere the EU will remain our biggest trading partner through sheer fact of geography.
Mr Phipson said it is vital that Government works with business and the EU to smooth out critical issues such as customs procedures. “Otherwise there is a risk that the drop in exports to the bloc we have seen over the last couple of years will become structural and permanent.”