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The annual Make UK/BDO Regional Manufacturing Outlook highlights manufacturers' contribution to economic regions of the UK in terms of output, jobs and investment. It also highlights the exposure of those regions with a high dependence on exports to the EU that are already suffering losses, but are also likely to be most at risk from a 'no deal' Brexit, barriers to trade and tariffs.

According to the analysis, Wales (almost two thirds), the North East and Yorkshire & Humber (both 60%) have a very high exposure to trade with the EU, the risks of 'no deal' are likely to be felt disproportionately by these areas in particular. The East Midlands is also not too dissimilar with manufacturing accounting for almost a fifth of its economy and the EU being its biggest market accounting for just over half its exports.

Wales and the North East both contain some of the most economically disadvantaged areas of the UK, a hard Brexit is likely to pose serious challenges for policymakers in these areas.

Policymakers need to be on high alert to deal with the fallout from this to ensure manufacturers do not suffer collateral impact as a result. This underlines why we strongly support calls for the Government to agree a deal with the EU which protects and supports British manufacturers 

Stephen Phipson Make UK, CEO
The long term uncertainties around Brexit, minimal progress on the Government’s industrial strategy, technological disruption, skills shortages and heightened global competition are all taking their toll on the performance of manufacturers across the UK.
Tom Lawton Head of Manufacturing at BDO

Available resources

Manufacturing / Economic indicators / Industry report